22nd Oct 2026 09:47
(Alliance News) - J Sainsbury PLC on Thursday lifted its profit outlook as it reported "volume growth, share gains and profit growth" in its half-year, but shares struggled as its second quarter sales rose at a softer pace than expected.
Shares in J Sainsbury were down 3.8% to 346.30 pence per share on Thursday morning in London.
The London-based grocer said pretax profit from continuing operations in the 28 weeks to September 12 improved 7.7% to GBP306 million from GBP284 million, with revenue up 4.1% to GBP16.24 billion from GBP15.60 billion.
Excluding fuel, total sales from continuing operations were 2.6% higher at GBP13.96 billion, up from GBP13.61 billion a year earlier.
Half-year underlying operating profit climbed 3.6% to GBP525 million from GBP507 million, Sainsbury's said.
Argos has been classed as a discontinued operation. In July, Sainsbury's said it agreed to sell the unit to Swift Partners for at least GBP120 million. Sainsbury's acquired Argos in 2016 for GBP1.4 billion.
"The consistent strength of our customer offer helped deliver volume growth, share gains and profit growth in the first half," the company said.
By category, Sainsbury's Grocery sales rose 2.9% year-on-year, while General Merchandise & Clothing sales declined 3.4%.
Sainsbury's said its like-for-like sales excluding fuel climbed 1.9% year-on-year in the first half. In the second quarter alone, growth was 1.2%, shy of company-compiled consensus of 1.9%.
Sainsbury's maintained its interim dividend at 4.1 pence per share.
The firm's underlying operating profit guidance before the half-year results ranged from GBP975 million to GBP1.08 billion.
This was equivalent to GBP965 million to GBP1.07 billion on a continuing operations basis, excluding Argos.
Sainsbury's has lifted the lower end of that range to GBP1.03 billion. It still expects to deliver free cash flow of more than GBP500 million.
Underlying operating profit in financial 2026 amounted to GBP1.03 billion.
Chief Executive Simon Roberts said: "As we progress the sale of Argos and further sharpen our focus on food, we are building a simpler, more focused Sainsbury's. With great value, outstanding quality and exciting new food across our ranges, we're looking forward to helping customers enjoy a really special Christmas."
By Niall Holden, Alliance News reporter
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