Tesco has forecast a further increase in profit in its new financial year as strong demand and new customers helped it to post a 11% jump in 2023/24.
The UK's largest supermarket group forecast retail adjusted operating profit, its key profit measure, of 'at least' £2.8 billion (€3.27 billion) for its 2024/25 year.
It made €2.76 billion (€3.23 billion) in the year to Feb. 24 2024, slightly ahead of guidance of £2.75 billion (€3.21 billion) and up from £2.49 billion (€2.91 billion) made in the previous year.
Tesco Group Sales
Group sales, excluding VAT sales tax and fuel, rose 7.4% to £61.5 billion (€71.9 billion), with UK like-for-like sales up 7.7%.
Tesco has a 27.3% share of Britain's grocery market, up 40 basis points on the year, according to industry data.
Like-for-like sales in the Republic of Ireland were up 6.8%, its Booker business posted a like-for-like sales gain of 5.4%, and its Central European business saw a marginal increase (0.2%) in sales, with the group citing a 'challenging trading environment'.
The group, whose shares are up 9% over the last year, is benefiting from a strategy of matching the prices of discounter Aldi on key items, and the popularity of its Clubcard loyalty scheme, which provides lower prices for members.
Read More: Tesco Full-Year Results – What The Analysts Said
'Strong Momentum'
“This strong performance reflects the hard work of colleagues across the whole Tesco Group, and their commitment to serving our customers," commented Ken Murphy, chief executive. "Customers are choosing to shop more at Tesco, which is reflected in growing market share as they respond to the improvements we’ve made to the value and quality of our products.
"We have strong momentum in our business, and are encouraged by signs of improving consumer sentiment. We’re excited about the opportunities ahead, with the right plans to keep winning with customers, as well as a great team to deliver them.”
Additional reporting by ESM
