Tesco raises forecast amid strong H1
According to Tesco, it will continue to prioritise cost reductions wherever it can through its work with the group’s supplier partners
Tesco has reported adjusted operating profits of £1.3bn in the UK, an increase of 17.2%, as like-for-like sales across the group increased 7.8% and inflation fell across H1.
As a result, it now expects to deliver between £2.6bn and £2.7bn in retail adjusted operating profit for the 2023/24 financial year.
The supermarket chain attributed its performance to its “relentless focus on customers, combined with significant cost reductions”.
The group also expects to generate retail free cash flow of between £1.8bn and £2bn this year, which is ahead of its medium-term guidance range of £1.4bn to £1.8bn.
According to Tesco, it will continue to prioritise cost reductions wherever it can through its work with the group’s supplier partners.
Statutory revenue also hit £34.1bn, showing an increase of 5% at actual rates, with fuel sales down 20.5% due to lower retail prices.
Meanwhile, it reported statutory operating profit of £1.4bn, up 105.5% and profit before tax of £1.2bn up 207.3%. This primarily reflects last year’s £626m non-cash impairment charge, with no charge in the first half of the current year, and “strong” trading performance.
Ken Murphy, CEO of Tesco, said: “We know how challenging it is for many households across the country, as they continue to grapple with ongoing cost of living pressures. We are committed to doing everything we can to drive down food bills and Tesco is now consistently the cheapest full-line grocer.
“We are in a strong position to keep investing for customers, and will continue to lower prices wherever we can – doing everything in our power to make sure customers can have a fantastic, affordable Christmas by shopping at Tesco.”
