Sainsbury’s reports 11.3% rise in profits
Supermarket giant Sainsbury’s has today announced an 11.3% rise in full-year profits, due to demand for its cheaper own-brand products.
As a result of the economic downturn, consumers have becoming increasingly ‘savvy’ by opting for cheaper products, according to Sainsbury’s chief executive, Justin King.
Sainsbury’s, which is the UK’s third largest supermarket, said around 70% of its customers are now buying its ‘basics’ range.
Like-for-like sales, which strips out revenues from stores opened during the year as well as fuel gains, grew by 4.5%, while overall sales rose by 5.7% to £20.4 billion.
The rise in profits means the 120,000-strong workforce will share a bonus pot of £60 million – a 28% rise on the £47 million shared last year.
Furthermore, Sainsbury’s which celebrates its 140th anniversary this year, said its full-year dividend would total 13.2p per share, up 10% compared with 2008.
However, Mr King acknowledged that although the current economic environment looked set to remain challenging, he said the group is well-placed to continue its progress.
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