Underlying profit before tax for the 52 weeks to 22 March rose 28.4% to £488m on total retail sales up 5.8% to £19.3bn. Pre-tax profit rose from £477m to £479m during the period.
The supermarket chain said it planned to invest around £30m over the next two years to launch a non-food online offer in the first-half of the 2010 financial year.
More space would also be made available in-store for non-food ranges and Sainsbury's said it expected two-thirds of sales growth to come from food and one-third from non-food in the future.
CEO Justin King added that the year marked the completion of the retailer's Making Sainsbury's Great Again recovery plan launched in October 2004. Since then, Sainsbury's has more than doubled profit and increased sales by £2.7bn.
“Sainsbury's is now a much better business, able to compete and grow in this challenging environment,” he said.
“We will continue to focus on developing our offer in line with changing customer requirements and on driving further operational savings. This will ensure we continue to make progress in the year ahead.”