British supermarket chain Sainsbury’s has reported a significant rise in its after-tax profit to £242m ($320m) for the fiscal year 2024/25 (FY24/25) – a 76.6% increase from the previous year’s £137m.
The group’s statutory revenue, inclusive of fuel but excluding value added tax (VAT), climbed 1.8% to £32.81bn.
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Retail sales of Sainsbury’s, excluding VAT and fuel, stood at £31.56bn – a 3.1% rise from £30.62bn in FY23/24.
The company’s namesake brand saw sales growth of 4.2% to £26.6bn, while Argos experienced a 2.7% decline to £4.9bn.
The final quarter showed robust sales across all brands, with Sainsbury’s and Argos witnessing increases of 4.1% and 1.9% respectively, buoyed by an uptick in online traffic.
Retail underlying operating profit of the group rose 7.2% to £1.04bn, with Sainsbury’s enjoying double-digit growth that was somewhat tempered by reduced profits at Argos.
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By GlobalDataDuring FY24/25cost-saving measures implemented by the company yielded £350m in savings, culminating in a four-year total exceeding £1.6bn.
In February 2024, the company set an ambitious target to achieve £1bn in cost savings by March 2027.
CEO Simon Roberts stated: “We’ve transformed our business over the past four years. We have created a winning combination of value, quality and service that customers love, investing £1 billion in lowering our prices.
“We are committed, above all else, to sustaining the strong competitive position we have built – consistently giving customers the great value they have come to expect from Sainsbury’s – and we expect to continue to outperform the market.
In FY25/26, Sainsbury’s anticipates outpacing market growth in grocery volumes and enters the year with solid trading momentum across all brands. Expectations are set for a retail underlying operating profit of around £1bn and retail free cash flow exceeding £500m.
Profit growth will be driven by sustained increases in Nectar’s profit contribution and exceptional cost-saving initiatives.
Roberts added: “Nectar is taking our ability to create personalised value and loyalty to the next level and our long-term contracts with farmers and suppliers demonstrate our commitment to resilience and sustainability across the UK food system.”
In January 2025, Sainsbury’s revealed its three-year Next Level strategy and cut 3,000 job in a corporate restructure.
