Figures for the year ending 1st March 2025 show Sainsbury’s underlying operating profit increased by 7.2%.

The supermarket’s preliminary financial results for 2024/25 reveal that Sainsbury’s profits and market share are both up for the year ending 1st March.

Commenting on the company’s preliminary results, J Sainsbury plc chief executive Simeon Roberts said: “We’ve transformed our business over the past four years. We have created a winning combination of value, quality and service that customers love, investing £1 billion in lowering our prices.”

“More people are choosing Sainsbury’s for their main grocery shop.”

Roberts continued: “More people are choosing Sainsbury’s for their main grocery shop as a result, delivering our highest market share gains in more than a decade. We are committed, above all else, to sustaining the strong competitive position we have built – consistently giving customers the great value they have come to expect from Sainsbury’s – and we expect to continue to outperform the market.”

Headline figures

Sainsbury’s FY sales (excluding fuel) were up 4.2% to £26.6 billion and strong year-end sales momentum saw sales growth in all its brands: Sainsbury’s Q4 sales were up 4.1% and Argos Q4 sales were up 1.9%. The company’s retail underlying operating profit of £1,036 million is up 7.2%. Statutory profit after tax is up 77% at £242 million.

The company plans to buy back at least £200 million of shares in 2025/26 and expects to return bank disposal proceeds of £250m via special dividend in the second half of the year, which it says is a reflection of the strength of its balance sheet.

In a statement, Sainsbury’s said that the first year of its ‘Next Level Sainsbury’s’ strategy has built on the success of the ‘Food First’ strategy, which has delivered further grocery market share gains, adding that it has “built resilience and sustainable competitive advantage through strengthening the fundamentals of the business across logistics, technology, and the way we work with suppliers”. As a consequence, it says, it will accelerate its plans to bring more of the Sainsbury’s food range to more customers.

Grocery performance

Sainsbury’s said it has delivered a record-breaking year in grocery and outperformed the market in each quarter for the second consecutive year, attributing this to its “winning combination of outstanding quality, great value, and leading service”. Launching more than 1,300 new products over the course of the year, it said that its Taste the Difference range showed particularly strong performance with more than 600 product launches and sales growth of 15%.

The supermarket chain acquired 14 new sites over the year and expects to convert and open the majority of them during 2025/26. As part of the company’s ‘More for More’ plan, it is making investments so that more of its food range is available to more customers.

Referring to recent changes made to food services in its stores, such as the closure of Sainsbury’s Cafés and ongoing closures of patisserie, hot food, and pizza counters, the company said that these were made in order to “drive growth and availability at a reduced cost to serve, allowing us to create further space to offer more fresh food ranges”. From the Autumn, it plans to create new ‘On the Go’ hubs with ‘flexiserve’ hot food offerings.

Online grocery sales increased 7% year-on-year, with this sector delivering the highest customer satisfaction growth across all Sainsbury’s channels, and customers recognising “improved availability as well as appealing promotions through personalised Your Nectar Prices”, according to the company.

As part of plans to play a “leading role” in creating a more sustainable food system, Sainsbury’s said that it is “creating a new culture of collaboration and long-term partnership with our suppliers to deliver shared value and build resilient supply chains”.

Last month, the supermarket announced a 10-year partnership with Cranswick, which it said will set new standards in pig welfare and to provide more stability for the 170 farmers in the Sainsbury’s Pork Producer Group. Together, the companies plan to invest more than £60 million to implement these new higher standards. Sainsbury’s aims to offer Taste the Difference pork that meets net zero criteria by 2029 and by Sainsbury’s fresh pork by 2030.