Tesco, the º£½ÇÊÓƵ's largest supermarket chain, has raised its profit guidance following another robust trading period. The retail giant adjusted its operating profit guidance to £2.9bn, up from £2.8bn, after achieving volume growth beyond expectations.
Sales at the grocer increased by 3.5 per cent in the 26 weeks ending 24 August 2024, the first half of its fiscal year, rising from £30.4m in the first half of 2023 to £31.5m in 2024. Statutory revenue saw a growth of 2.9 per cent to £34.7m, while operating profit rose by 13 per cent to £1.6bn, primarily driven by retail operations, according to the company, as reported by .
Pre-tax profit saw an increase of just under 20 per cent, from £1.2bn to £1.4bn. Adjusted diluted earnings per share for the period surged by 23.7 per cent to 14.45p.
The company also increased its interim dividend per share by 10.4 per cent to 4.25p. According to the latest Kantar grocery figures, Tesco holds the largest market share among º£½ÇÊÓƵ grocers, with 27.8 per cent, marking a rise of 0.6 per cent from last year.
CEO Ken Murphy stated: "We've been working really hard to offer our customers the best possible value, quality, and service and they are shopping more at Tesco as a result."
He added: "We have lowered prices on thousands of lines, launched or improved over 860 products in partnership with our suppliers and growers, and our customer satisfaction scores continue to improve across a broad range of measures... we are as competitive as we have ever been."
"We are in good shape, with volume growth delivering strong financial performance. Our strong momentum allows us to continue to focus on value, quality, innovation, and the broader customer experience, whilst investing in growth opportunities in a disciplined, returns-focused way."
Earlier this month, Murphy made headlines when he suggested Tesco would use AI to nudge customers into changing their shopping habits via its Clubcard programme.
Tesco reported that sales penetration of its clubcard had increased in all markets year on year, and the company added that there was already further personalisation in the mix, with 4.9m customers receiving 'Clubcard Challenges' tailored to their shopping habits.
Matt Dorset, equity analyst at Quilter Cheviot, commented: "Tesco's results have exceeded expectations, showcasing solid performance across the board."
"Tesco's commitment to maintaining strong consumer relationships is evident in their recent price cuts on over 860 products, which have contributed to improved customer satisfaction."
