Supermarket chain Sainsbury’s has seen its half year profits rise by seven per cent, increasing before tax to roughly £400 million.
The company posted its results for the 28 weeks leading up to September 28th, showing that it is now the second largest supermarket in the UK after Tesco.
Chief executive of Sainsbury’s Justin King explained that it is poised for further growth but says that it will take some time before economic recovery can take effect as consumers are still reluctant to spend.
Additionally, it will be a while before the chain catches up to Tesco, although the giant recently posted a 1.5 per cent decrease in trading profit for the first half of the year.
On Wednesday (November 13th) morning, Sainsbury’s share price was up 1.35 per cent.
With a 16.8 per cent share of the market, Mr King says that this is the highest the chain has seen for a decade. The higher profits follow 35 consecutive quarters of growth in like-for-like sales.
Find up to date information on the FTSE 100 and spread betting strategies at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.