Healthy foods are good for Sainsbury's profits

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With promotional help from Jamie Oliver, the lines took underlying pre-tax profits for the year to March to £ 380million - up from £267million. Sales leapt 6.9 per cent to £18.52billion.

Company executives welcomed the figures as 'better than expected'. However the profits look small alongside the £2billion-plus of Tesco.

Increased demand for healthy food has led Sainsbury's to expand its organic range to more than 1,000 lines.

It saw a rise of 450 per cent in sales of organic products last year. It has also switched to stocking only Fairtrade of bananas and reported a rise of 50 per cent in sales of free-range chicken.

The firm has turned itself around since posting a loss in 2004.

It plans to open 30 superstores and 100 smaller shops.

Staff will share in the success by getting a portion of a £56million bonus pot linked to increased profits and sales.