Sainsbury’s predicts loss of more than £500m profits this year as it reports 2% drop in quarterly profits of £586m
Sainsbury’s today warned the coronavirus crisis will cost them £500million over the coming year as their profits also dropped.
The supermarket has this morning posted a 2 per cent fall in underlying pre-tax profits to £586 million for the year to March 7.
Sainsbury’s, No 2 to market leader Tesco, said that the £500million Covid-related costs would would be broadly offset by stronger grocery sales and approximately £450million in business rates relief for retailers.
That would mean group underlying profit before tax for the year to March 2021 would be broadly unchanged from the £586million pounds reported for the 2019-20 year.
Sainsbury’s shoppers in Bridlington queue at two metre gaps to maintain social distancing as the coronavirus lockdown took hold – as the supermarket revealed customers bought huge amounts of food in the past six weeks
Shelves in stores were cleared as people bought more items than they would at Christmas
It saw total grocery sales jump 12% in the seven weeks to April 25, compared with a 2 per cent rise in the final quarter of its previous financial year.
Big falls in clothing and fuel sales because of social distancing and the lockdown would offset surging grocery trade, boss Mike Coupe, who is leaving on May 31, said today.
The supermarket has scrapped its final shareholder dividend and said decisions on further payouts would be deferred until later in the financial year – a decision which comes after rival Tesco faced criticism for paying out £635 million.
Sainsbury’s full-year results showed a 2% fall in underlying pre-tax profits to £586 million for the year to March 7.
On a statutory basis, pre-tax profits rose to £255million from £202million the previous year.