Sainsbury’s, the UK’s second-largest supermarket, said it expects cost inflation of 2% to 3% over the next 12 months as a result of the weaker sterling and rising commodity prices. The retailer said cost inflation, which includes its food purchases, had risen by 2.5% for its 2016 financial year as sterling deflation worked its way through. Sainsbury’s chief executive Mike Coupe said the company has done a “particularly good job of mitigating costs within our supply chains to reduce the impact as far as ongoing retail prices are concerned”.
The higher rate of cost inflation, coupled with continued investment in prices, resulted in an 8% decline in pre-tax profits to £503m (€599m) for Sainsbury’s financial year ended March 2017. Sales in the group’s retail business grew by 13% to £28.7bn (€34bn).
However, operating profits in Sainsbury’s retail business declined 1.4% to £626m (€746m) as profit margins narrowed to 2.2%.
ADVERTISEMENT
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Sainsbury’s, the UK’s second-largest supermarket, said it expects cost inflation of 2% to 3% over the next 12 months as a result of the weaker sterling and rising commodity prices. The retailer said cost inflation, which includes its food purchases, had risen by 2.5% for its 2016 financial year as sterling deflation worked its way through. Sainsbury’s chief executive Mike Coupe said the company has done a “particularly good job of mitigating costs within our supply chains to reduce the impact as far as ongoing retail prices are concerned”.
The higher rate of cost inflation, coupled with continued investment in prices, resulted in an 8% decline in pre-tax profits to £503m (€599m) for Sainsbury’s financial year ended March 2017. Sales in the group’s retail business grew by 13% to £28.7bn (€34bn).
However, operating profits in Sainsbury’s retail business declined 1.4% to £626m (€746m) as profit margins narrowed to 2.2%.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS