// Sainsbury’s warns that its profits this year will be hit by soaring inflation as the cost-of-living crisis continues
// The grocer provided an estimate for underlying profit before tax of between £630m and £690m
Sainsbury’s has warned of a lower profit for the coming year as inflation continues to surge and the cost-of-living crisis causes a drop in shoppers’ disposable incomes.
The UK’s second-largest grocer said that its underlying pre-tax profit in 2022-23 was expected to be between £630m and £690m, compared to the £730m underlying profit it has reported for the year to 5 March 2022.
The supermarket said: “The year ahead will be impacted by significant external pressures and uncertainties, including higher operating cost inflation and cost of living pressures impacting customers’ disposable incomes.
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“In that context we are determined to continue our consistent improvement in grocery value, innovation and customer service, funded by our comprehensive cost savings programme and we expect to continue our strong grocery volume market share performance.”
Sainsbury’s chief executive Simon Roberts said: “We know just how much everyone is feeling the impact of inflation, which is why we are so determined to keep delivering the best value for customers.
“We have been able to drive more investment into lowering food prices funded by our comprehensive cost savings plans. As a result, we continue to inflate behind competitors on the products customers buy most often.”
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