Sainsbury's year-end profit up 28%
J Sainsbury's reported a 28% rise in full-year pre-tax profits, but said it expects the market to remain 'intensely competitive'.
The supermarket giant's underlying pre-tax profit rose to £488m in the 52 weeks to 22 March from £380m last time, more than double the £238m reported for the year to March 2005, which was prior to group's recovery plan.
Total retail sales are up 5.8% to £19.29bn compared with £18.23bn previously, while like-for-like sales, excluding fuel, increased by 3.9%.
The group is recommending a final dividend of 9p per share, making the full year dividend 12p, an increase of 23.1% compared to last year.
"Consumer budgets are clearly under pressure and we expect the market to remain intensely competitive. Sainsbury's is now a much better business able to compete and grow in this challenging environment," said chief executive Justin King.
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"We will continue to focus on developing our offer in line with changing customer requirements and on driving further operational savings. This will ensure we continue to make progress in the year ahead," he added.
Sainsbury's also plans to launch a non-food online business in the first half of 2009/10. About £15m will be invested in the project in the 2009 financial year and a similar amount in the following year.
In a separate statement this morning, the group announced changes to its operating board with the addition of four new appointments to "further strengthen the leadership team and to provide the appropriate structure to steer the company through its next period of development."
The four new executives include Angela Morrison, currently director of information services, who will become IT and change director; Neil Sachdev, currently commercial director, who will become commercial services director; John Rogers, currently director of group finance, who will become property director; while Luke Jensen, who joined Sainsbury's in mid-April 2008 to the newly created role of director of strategy will also join the operating board.
