The continuing underlying operating profit for Sainsbury’s was recorded as £525 million, which was up 3.6% from the previous year, reflecting volume growth, annual cost saving delivery and balanced investment, said the retailer. Sainsbury’s has estimated an underlying operating profit from continued operations of between £1,025 million and £1,065 million by 2027.

Sainsbury’s said its interim results had found that online grocery sales were up 9% across 95% of stores in the UK, and highlighted total revenues of £16.2 billion, up from £15.5 billion the year prior.

As part of the Next Level Sainsbury’s plan, which was set out in February 2024, the business made eight commitments to invest in the future of the business. Some of these commitments include: food volume growth ahead of the market, £1 billion of cost savings over three years to 2026/27 and a higher return on capital employed.

The retailer announced that it would sell its Argos business to Swift Partners by the end of February 2027, with the full separation expected by 2029. Sainsbury’s reported statutory loss after tax of £(264 million), which it attributed to the discontinuing of its Argos operations.

Chief executive of Sainsbury’s PLC Simon Roberts commented: “We know many households are finding things tough at the moment and we’re making it easier for customers to enjoy good food every day, whatever their budget. That’s why more people are choosing us for their weekly shop, driving continued volume growth in the first half.

“We’re delivering trusted value for customers. Through Nectar Prices and the biggest Aldi Price Match in the market, Sainsbury’s is helping customers save on the products they buy most often and inflating behind the market.

“Innovation is powering our progress. We’re bringing more choice and exciting new food to customers and expanding ranges in more stores. Taste the Difference sales grew by more than 6% and our restaurant-quality Taste the Difference Discovery range will soon have 200 products. We’re also making healthier choices easy, affordable and delicious through our expanded Full on Fibre range.

“Our long-term relationships with British farmers and suppliers help us deliver the food customers love at great value, while giving producers a predictable profit and the confidence to invest and plan for the future. My huge thanks go to our colleagues, farmers and suppliers whose passion, expertise and commitment make this possible every day.”