Tesco reports a ‘good start to the year’ as HY sales increase 12.5%
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Tesco has reported a 12.5% increase in group revenue the first six months of the year to 25 August, as it records its eleventh consecutive quarter of sales growth in the UK and Ireland.
Group revenue at the ‘big four’ supermarket totalled £28.3bn as statutory group pre-tax profits increased by 2% to £564m. Additionally like-for-like sales for the UK and Ireland grew by 3.8% in the first half – when including the impact of its £3.7bn purchase of wholesaler Booker.
In the UK and Ireland Tesco reported a 47.6% rise in operating profits to £685m – £97m of which it said was linked to Booker.
Chief executive Dave Lewis said that Tesco had made a “good start to the year” and added that the growth was “driven mainly” by growth in the UK and Ireland.
He said: “At the same time, we have made further strategic progress. We completed our merger with Booker in March and are delighted with performance so far. We announced a strategic alliance with Carrefour in July which goes live this month. And we are now more than half-way through the biggest own brand re-launch in our nearly 100-year history, including a significant investment in over 300 new ‘Exclusively at Tesco’ products at market-leading prices.
“We are firmly on track to deliver our medium-term ambitions and are continuing to improve the quality and value of our offer for customers in all of our markets. In doing so, we are well-positioned to deliver strong, sustainable returns for shareholders.”
The news comes after the group recently launched its new discount brand – Jack’s. The company again reiterated its plans to launch a further 10-15 Jack’s stores in the UK over the next six months.
