Sainsbury’s warns war in the Middle East could weigh on profits
Sainsbury’s has become the latest company to warn that the war in the Middle East will hit both its customers and its profits.
Britain’s second biggest grocer said it will have an ‘absolute focus on keeping prices low’ as the conflict adds pressure to the price of food.
There have been warnings from the Food and Drink Federation that food inflation could hit up to 10 per cent by the end of the year.
Sainsbury’s said: ‘The conflict in the Middle East will impact both our customers and our business. The duration and extent of these impacts is very uncertain and this is reflected in our profit guidance.’
The war means it expects lower profits for its current financial year, with a range of between £975million and £1.01billion for total underlying operating profit.
Uncertain: Other retailers have warned that their outlook is hard to predict given the war
It said comparable profits rose 1.1 per cent to £1.02bn in the year to 26 February, compared to the year before.
Chief executive Simon Roberts added: ‘The conflict in the Middle East means customers are even more focused on the cost of living and we are absolutely committed to making sure everyone gets the best possible value when they shop with us.’
His remarks come just days after the boss of Tesco said it is ‘doing whatever we can’ to keep food prices down as the conflict creates ‘further uncertainty’ in its outlook for the year.
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