Sainsbury’s (LON: SBRY) reports first-quarter results on Tuesday as it looks to further reveal the impacts soaring food inflation is having on the big supermarket chains.
The supermarket giant has already had to bat away claims of “greedflation” in recent months. Despite this, recent results showcased a 5% fall in underlying profit before tax to £690m for the year to March 4. Meanwhile, retail sales grew 5.2% for the year, with grocery sales up 3%, mainly driven by inflation.
Strong momentum at the start of the new financial year meant the group predicted profits of £640m to £700m as they looked to build on and sustain this momentum.
The last few weeks have seen price cuts to several items, including milk and pasta, despite food inflation remaining elevated.
Sainsbury’s shares have performed well over 2023, gaining 22%. However, they have slightly stagnated in recent months, given questions about inflation and the impact on Sainsbury’s profits. Its share price was recently raised at JPMorgan to 209p from 219p.
By Jamel Boughedda