Verified facts
Sainsbury's reported £525m of underlying operating profit from continuing operations in its first half, up 3.6%. Sales from continuing operations excluding fuel increased 2.6% to £14.0bn.
The group nevertheless recorded a total statutory loss after tax of £164m, compared with a profit a year earlier. The company attributed the loss primarily to discontinued operations, with Argos now classified in that category following its agreed sale.
The proposed interim dividend is 4.1p a share, unchanged from a year earlier. The company has completed £200m of its previously announced £300m buyback. Today's update is not a new £300m repurchase announcement.
Apolifina analysis
Underlying operating profit and total statutory profit measure different things. Looking only at the former would miss the costs associated with the business being sold; looking only at the statutory loss would miss the continuing operation's trading performance.
For investors, the separation of Argos also changes the basis of future comparisons. Forecasts for continuing operations should be compared with equivalent figures, rather than the old combined business without adjustment.
Uncertainty and risk
The Argos sale is agreed, not completed. A proposed dividend is not a guaranteed future distribution, and buybacks do not guarantee a higher share price. Competition, costs and household demand remain risks. General information only.
Primary sources
Source released 22 October 2026; rechecked 28 October 2026. This is catch-up coverage of that release, not breaking news on 28 October.
Continue reading: Tesco interim results; September inflation