Sainsbury's reports profit slide amid 'challenging' market
Sainsbury's has reported an 8.2% fall in annual profit to £503m amid a "challenging" food market.
The group, which also includes Argos after a £1.4bn takeover last year, said lower earnings reflected investment in its customer offer and cost inflation.
But that was offset by cost savings elsewhere and a contribution of £77m from Argos in what chief executive Mike Coupe described as a "pivotal year".
Mr Coupe said: "Our food business remains resilient in a challenging market and we continue to innovate in quality and to invest in price."
Like-for-like sales for the 52 weeks to 11 March were down 0.6% but this was an improvement on the 0.9% decline in the previous year.
Sainsbury's faces tough competition from supermarket rivals in a sector that has come under pressure from discounters Aldi and Lidl.
At the same time, costs are being pushed higher because the pound's sharp fall since the Brexit vote as driven up the price of imported goods.
The group said: "The market remains competitive and the impact of cost price pressures remains uncertain."