'Strong sales' boost Sainsbury's

Sainsbury's Chief Executive Justin King says people spending again

Sainsbury's has seen its latest half-year profits rise by one-third, buoyed by an increase in sales.

The supermarket group's pre-tax profit in the six months to 3 October totalled £342m, up 32.6% from £258m a year ago.

Its like-for-like sales excluding fuel, which strips out the impact of new store openings, rose 5.7%.

It said it was a strong performance given the economic climate, but trading conditions could be even tougher in the second half of the financial year.

'Splash out'

When one-off factors, such as a £37m positive property revaluation, are pulled out, Sainsbury's underlying pre-tax profit for the period totalled £307m, up 18.5% on a year earlier and near the top end of analysts' forecasts.

Only by the middle of next year will it be clear whether we are climbing slowly and clearly out of recession Justin King, Sainsbury's chief executive

The company said it was now continuing with plans to create 10,000 jobs by March 2010, as it expands its retail space by 15% - both through new stores and the expansion of existing branches.

It is also taking on 20,000 temporary staff at Christmas.

Sainsbury's chief executive Justin King told the BBC that the sales rise was due to a combination of winning more customers from its rivals and its existing shoppers spending more.

Despite the supermarket's warning of tougher trading between now and March, he added that Sainsbury's still expected decent sales over the festive period.

"Christmas is a time when people will splash out a little," he said.

But he added: "Only by the middle of next year will it be clear whether we are climbing slowly and clearly out of recession."

Sainsbury's total sales for the half-year rose 3.7% to £11.2bn.