J Sainsbury PLC (LSE:SBRY) backed full-year guidance as it reported food inflation is starting to ease.
Chief executive Simon Roberts said: “Food inflation is starting to fall and we are fully committed to passing on savings to our customers.“
After facing accusations of profiteering, Roberts stressed: “Prices on our top 100 selling products are now lower than they were in March, against a market where prices have gone up.”
The food retailer said in the 16 weeks to 24 June like-for-like sales were up 9.8%, and excluding fuel, were up 9.2%.
The firm reported continued strong grocery momentum, with sales up 11% and a return to volume growth and strengthening market share.
General merchandise sales rose 4%, with Argos sales up 5.1%, as strong consumer electronics sales offset weaker early Summer seasonals performance.
Sainsbury’s continues to expect financial year 2023/24 underlying profit before tax of between £640mln and £700mln and to generate at least £500mln of retail free cash flow.