Sainsbury’s Raises Profit Outlook; Boosts Shareholder Returns

J Sainsbury plc (LON: SBRY) has released its interim results for the 28 weeks ended September 13, 2025, showcasing a robust performance driven by a focus on value, quality, and service.

Sainsbury's reported a 5.2% increase in sales (excluding fuel), with grocery sales climbing 5.3% and general merchandise & clothing sales rising 3.3%. Argos sales also saw a positive uptick, growing by 2.3%. However, fuel sales experienced an 11.3% decline.

Retail underlying operating profit remained steady at £504 million, aligning with the previous year's figure, but exceeding internal expectations. Statutory profit after tax more than doubled, reaching £165 million compared to £76 million in the prior year.

These figures reflect strong trading and effective cost management, allowing for strategic investments in customer value and service.

The company's strong cash flow generation has enabled it to increase returns to shareholders. Proceeds from the bank disposal are now expected to exceed £400 million.

Sainsbury's plans to return this surplus capital through a £250 million special dividend and an additional £150 million in share buybacks. The interim dividend per share has also been increased by 5% to 4.1 pence. Total cash returns to shareholders in financial year 2025/26 are now projected to exceed £800 million.

Retail free cash flow landed at £310 million. The company is on track to exceed £500 million for the full year. This financial strength allows Sainsbury’s to invest in strategic initiatives, while also rewarding investors.

CEO Simon Roberts emphasized the company's commitment to delivering value, quality, and service. “We started this year with one clear priority – to sustain the strong competitive position we have built over the last five years,” Roberts stated. “We have delivered on this in the first half, with focused and effective investment to ease cost-of-living pressures.”

Sainsbury's has raised its outlook for Retail underlying operating profit to more than £1 billion, demonstrating confidence in its ability to navigate a competitive market. The company's ongoing transformation initiatives and focus on customer loyalty are expected to drive continued growth and profitability.