Overview
- Sainsbury’s, in a Thursday update, set underlying operating profit guidance for this year at £975 million to £1.075 billion and said the war’s effect on trading is very uncertain.
- Chief executive Simon Roberts said the conflict will hit customers and the business and warned there will be pressure on food prices.
- Roberts urged ministers to extend energy support to food manufacturers to cap costs as the UK growing season drives high energy use, while the Food and Drink Federation projects food inflation near 9% to 10% this year.
- For the year to February 28, underlying operating profit came in at £1.025 billion, down 1.1%, as the group invested in prices to hold share and keep bills lower for shoppers.
- Argos remains a weak spot with sales up 0.7% and a new dedicated management team now steering its turnaround, as rivals Tesco, M&S and Asda join sector calls for lower energy costs.