Sainsbury’s profits fall amid soaring inflation – but still beat market expectations

Outlook ‘to remain challenging’ says supermarket chief executive

Sainsbury’s said it is ‘determined to battle inflation’ for its customers following a hit to profits (AP)

Sainsbury’s has revealed falling annual profits as it took a hit from soaring costs but said it is “determined to battle inflation for our customers”.

Britain’s second-largest grocery chain reported a 5 per cent fall in underlying pre-tax profits to £690m for the year to March 4 as it spent £560m on prices, saying inflation in its stores was less than half that seen across the sector as it also sought to compete with discounters Aldi and Lidl.

Boss Simon Roberts held off from saying the peak in food price inflation had passed, but said there was a chink of light, with prices falling for some products such as milk and fresh food as commodity prices begin to fall.