Sainsbury’s has announced a 2.7% jump in group revenue to £33.65bn in its 2025/26 financial year, although the supermarket also warned that the conflict in the Middle East will impact both its customers and business.

The supermarket group reported a retail underlying operating profit of £1.03bn, a figure down 1.1% year-on-year as it cited “significant operating cost inflation”, although this was in line with previous expectations.

Sainsbury’s was posting its latest annual results for the year to 28 February, which largely covered the period before the more recent US-Israeli attacks on Iran.

Looking to the immediate future, Sainsbury’s suggested that uncertainty around both the duration and extent of the impact stemming from events in the Middle East mean the supermarket is unclear on whether its profits next year will be marginally higher or lower than its latest figures.

In a forecast for the 2026/27 financial year, Sainsbury’s revealed it is currently expecting to deliver total underlying operating profit of between £975m and £1.08bn.

The group did reveal that it had made a “positive start” to the new financial year, with grocery volume growth ahead of the market, but warned that trading in its Argos business is continuing to reflect a “subdued general merchandise market”.

“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,” Sainsbury’s chief executive, Simon Roberts, said.

“We will do everything we can to support our customers and colleagues over the coming months, with absolute focus on keeping prices low. We have made a positive start to the new financial year, with continued strong grocery momentum.”

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