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| Sainsbury's profits decline for second straight year | Sainsbury's profits decline for second straight year |
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| British supermarket Sainsbury's said it did not expect tough trading conditions to lift any time soon as it reported a second straight year of profit decline, dragged down by its own price cuts. | British supermarket Sainsbury's said it did not expect tough trading conditions to lift any time soon as it reported a second straight year of profit decline, dragged down by its own price cuts. |
| Sainsbury's, which has coped better than most with the recent turmoil in the sector, did beat analysts' profit forecasts for the 2015-16 year and said its strategy was working well. But it still issued a cautious outlook for the industry. | Sainsbury's, which has coped better than most with the recent turmoil in the sector, did beat analysts' profit forecasts for the 2015-16 year and said its strategy was working well. But it still issued a cautious outlook for the industry. |
| “The market is competitive, and it will remain so for the foreseeable future,” said Chief Executive Mike Coupe on Wednesday. “We believe we have the right strategy in place.” | “The market is competitive, and it will remain so for the foreseeable future,” said Chief Executive Mike Coupe on Wednesday. “We believe we have the right strategy in place.” |
| Sainsbury's, which has shown greater resilience to competition from German discounters Aldi and Lidl than its traditional rivals - market leader Tesco, Asda and Morrisons, made an underlying pretax profit of £587 million in the year to March 12. | Sainsbury's, which has shown greater resilience to competition from German discounters Aldi and Lidl than its traditional rivals - market leader Tesco, Asda and Morrisons, made an underlying pretax profit of £587 million in the year to March 12. |
| That compares to analysts' average forecast of £574 million and £681 million made in the 2014-15 year. | That compares to analysts' average forecast of £574 million and £681 million made in the 2014-15 year. |
| The firm, which last month agreed a £1.4 billion takeover of Argos-owner Home Retail, said group sales fell 1.1 per cent to £25.8 billion. | The firm, which last month agreed a £1.4 billion takeover of Argos-owner Home Retail, said group sales fell 1.1 per cent to £25.8 billion. |
| “We continue to outperform our main supermarket peers and maintain market share in a competitive, deflationary environment,” said Coupe. | “We continue to outperform our main supermarket peers and maintain market share in a competitive, deflationary environment,” said Coupe. |
| In March Sainsbury's reported fourth quarter like-for-like sales growth, excluding fuel, of 0.1 per cent — its first quarter of growth in over two years. | In March Sainsbury's reported fourth quarter like-for-like sales growth, excluding fuel, of 0.1 per cent — its first quarter of growth in over two years. |
| Its supermarkets recorded both like-for-like transaction and volume growth as customers responded to lower regular prices, better product quality and availability and improved customer service. | Its supermarkets recorded both like-for-like transaction and volume growth as customers responded to lower regular prices, better product quality and availability and improved customer service. |
| Shares in Sainsbury's, up 10.4 per cent so far this year, closed Tuesday at 285.7 pence, valuing the business at £5.6 billion. | Shares in Sainsbury's, up 10.4 per cent so far this year, closed Tuesday at 285.7 pence, valuing the business at £5.6 billion. |
| It said it was on track to deliver its three-year £500 million cost saving programme by the end of 2017-18. | It said it was on track to deliver its three-year £500 million cost saving programme by the end of 2017-18. |