Sainsburys: revenues up, profits down

Sainsburys has reported its half-year revenues were up 17% to £16.310 billion. Profit before tax for the period was down 9% at £251 million. The figures reflect the full consolidation of Argos and Habitat into the organisation.

Online groceries at Sainsburys grew by 7% compared to the same period last year.

In a statement Mike Coupe, Group Chief Executive, said that the group had “delivered a good perform”.

Coupe also said that the Sainsbury/Argos synergy was progressing.

“We are integrating Argos at pace,” said Coupe. “We have 112 Argos stores open in Sainsbury’s supermarkets and will have 165 open by Christmas, in addition to nearly 200 digital collection points across our stores. We are rolling out Click & Collect for Argos and Tu clothing to 100 Sainsbury’s Locals and Argos Fast Track same-day delivery and collection are now our fastest growing channels. We are on track to deliver our £160 million EBITDA synergy target from the Argos acquisition six months ahead of schedule.”

While the change and consolidation programme takes place between the former Home Retail Group companies and their new parent firm, things will always be a bit bumpy. This could still take another year or so, but the figures do show a sign of promise at the new acquisition by Sainsburys.

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