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Sainsbury’s Raises Profit Target Above £1 Billion, Announces Payouts, Warns on Budget Risks

The grocer warns that potential new taxes before the 26 November Budget could lift prices.

Overview

  • Sainsbury’s upgraded full-year retail underlying operating profit guidance to more than £1 billion after reporting £504 million in H1 underlying operating profit and £271 million pre-tax profit.
  • The company will return cash following its bank sale, declaring a £250 million special dividend and launching a further £150 million share buyback.
  • Chief executive Simon Roberts urged Chancellor Rachel Reeves to avoid fresh costs on retailers, citing a £140 million rise in employers’ national insurance and higher packaging charges as shoppers delay spending.
  • Sainsbury’s set out its biggest store push in over a decade, planning one new supermarket a month for 18 months and dozens of convenience openings over the next two years.
  • Argos growth slowed in the second quarter and Sainsbury’s confirmed talks to sell the chain to JD.com have ended with no ongoing discussions.