Sainsbury's holds guidance as volumes boost Christmas sales

(Sharecast News) - Strong volume growth helped lift like-for-like sales at UK supermarket chain Sainsbury's by 7.4% in the Christmas quarter, offsetting the impact of inflation, as the company held full-year profit guidance. Hard-pressed customers struggling with inflation and rising prices "treated themselves" during the 16 weeks to January 6, buying record numbers of pigs in blankets, mince pies and sparkling wine, said chief executive Simon Roberts on Wednesday.

Third-quarter grocery sales rose 9.3%, but there was a 0.6% decline in general merchandise, while clothing sales fell 1.7%.

Sainsbury's expects underlying profit before tax in 2023/24 of between £670m - 700 million, with a strong grocery performance offsetting weaker general merchandise and financial services contributions.

The company also expects to generate retail free cash flow in 2023/24 of at least £600m.

Reporting by Frank Prenesti for Sharecast.com