Sainsbury’s has recorded a 20 per cent increase in profits for the six months to October 6, despite earlier reports implying that the supermarket chain could be showing signs of struggle. In fact, the company has posted sales growth for the last consecutive quarters.
Less than two weeks ago, potential buyer Qatari investment group Delta Two unexpectedly pulled out of an acquisition deal the companies had been working on together for some months. This followed an earlier collapse in talks with equity company CVC toward the start of the year.
However, the group’s £232 million pre-tax profits, up from £194 million for the same period last year, were enough to quell any negative rumours. Sales rose 4.7 per cent to £9,998 million from £9,549 million in the prior-year period.
“Our recovery is well advanced and ahead of plan. Since March 2005, we have grown sales by £2.3 billion and we are ahead of our target to reach £2.5 billion by March 2008,” said chairman, Philip Hampton.
“During this [six-month] period we held protracted discussions with Delta Two. It has announced it will not be proceeding with an offer for Sainsbury's, and we continue to focus wholeheartedly on delivering our targets,” he added.
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