Tesco reports strong first half as it lifts profit outlook
Tesco has reported a strong trading performance in the first half of its financial year with growth across all markets.
Group like-for-like sales climbed by 4.3% as sales in the UK and the Republic of Ireland increased by 4.9% and 4.8% respectively.
Meanwhile, group adjusted operating profit edged up 1.6% at constant rates to £1.67 billion.
During the period, over 470 new products were launched and a further 560 products improved across own-brand ranges. The supermarket also opened a new semi-automated fresh food distribution centre in Aylesford and has committed to developing a new facility at DP World London Gateway which is expected to open in 2029.
Subscribe to TRBKen Murphy, Tesco chief executive, said: “I am pleased with our first half performance, which builds on already strong momentum.
“Our market share gains in the UK are a particular highlight and reflect the decisive action we took at the start of the year to further invest in value, quality and service.
“The extension of our savings programme is helping offset new operating cost inflation, including increased National Insurance and other regulatory costs. Sales have grown across all our businesses, with customer satisfaction scores improving once again.”
Tesco now expects full year group adjusted operating profit to be between £2.9 billion and £3.1 billion compered to a previous guidance of £2.7 billion and £3 billion.
Murphy added: “Competitive intensity remains high, and with continued pressure on household budgets, we remain committed to ensuring customers get the best possible value by shopping at Tesco.
“As we continue to invest, we are creating sustainable value for all our stakeholders. Our colleagues are central to everything we do, and I would like to thank them all for the role they have each played in delivering for our customers.”
