J Sainsbury PLC (LSE:SBRY) said it expects to post top-end full-year profits, after reporting strong food sales and record market share gains at the half-year stage.
“We're gaining volume from all of our grocery competitors, have grown ahead of the market throughout the first half and made record market share gains,” the company said in a statement.
The food retailer said in the 28 weeks to 16 September 2023, sales rose 3.5% to £16.98 billion while underlying pre-tax profits were flat at £340 million.
Retail operating profit of £485 million rose 2%, reflecting strong volume-driven grocery profit growth and continued delivery of Save to Invest cost saving benefits, partially offset by the impact of weaker seasonal sales on General Merchandise profits.
Grocery sales jumped 10.1% with volume growth across both quarters driving record market share gains and consistent market outperformance.
General Merchandise sales rose 1.1% but clothing sales fell 8.4%.
The FTSE 100 firm said it expects full-year underlying pre-tax profit between £670 million and £700 million, the upper half of its previous guidance, and retail free cash flow of at least £600 million, higher than previous guidance of at least £500 million.
Chief executive Simon Roberts also confirmed food inflation “is coming down and we are passing savings on to customers”.
The firm paid an interim dividend of 3.9 pence.