- Food and drink
J Sainsbury’s underlying pre-tax profits are up by 20 per cent after it slashed costs but growth in its core grocery division remained sluggish compared with rivals.
Britain’s second largest grocer, which is in the midst of trying to merge with Asda, recorded an underlying pre-tax profit of £302 million in the six months to September 28, up 20.3 per cent on last year. This beat market expectations of £278 million and came after it took £121 million of costs out of the business during the period.
When exceptional costs, such as those linked to the restructuring of its shop management teams and its proposed merger with Asda, are taken into account its statutory pre-tax profits fell sharply from £220 million to £132 million.
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