Sainsbury's warns of £500m virus hit
The retail giant said the impact of Covid-19 is expected to leave underlying pre-tax profits broadly flat for the year to March 2021, despite £450m in business rates relief.
It has scrapped its final shareholder dividend and said decisions on further payouts would be deferred until later in the financial year - a decision which comes after rival Tesco faced criticism for paying out £635m.
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Hide AdSainsbury's also announced that its chief executive Mike Coupe will leave the firm on May 31.
Sainsbury's full year results showed a 2 per cent fall in underlying pre-tax profits to £586m for the year to March 7.
On a statutory basis, pre-tax profits rose to £255m from £202m the previous year.
It saw total grocery sales jump 12 per cent in the seven weeks to April 25, compared with a 2 per cent rise in the final quarter of its previous financial year.
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Hide AdIn a trading update, the firm said: "The Covid-19 pandemic has had a significant impact on our business since early March.
"We have had three clear priorities throughout: keeping our customers and colleagues safe; helping to feed the nation and supporting our communities and the most vulnerable in society.
"Our colleagues have played an incredible role and have really pulled together to serve our customers. In particular, our store colleagues, our distribution centre colleagues, our drivers and customer careline teams are working on the frontline, ensuring that customers have good access to food and other essential items."