Sainsbury’s has posted a decline in full year profit after it invested £560 million in cutting prices during the cost of living crisis.
In the year to 4 March, underlying pre-tax profit dropped by 5% to £690 million, which was at the top end of a £630 million to £690 million guidance range. Sainsbury’s said the fall was partly a result of investment in the customer proposition and operating cost inflation.
On a statutory basis, pre-tax profit came in at £327 million compared to £854 million in the prior year.
Meanwhile group sales increased by 5.4% to £35.15 billion.
Looking ahead to the outcome of the new financial year, Sainsbury’s said it expects underlying pre-tax profit to be between £640 million and £700 million.
