London: Tesco, the UK’s biggest retailer, expects profits to rise further in the new financial year after posting 11% growth in 2023/24 thanks to strong demand and new customers.
The supermarket group on Wednesday expected retail adjusted operating profit, its key profit indicator, to be “at least” 2.8 billion pounds ($3.55 billion) for the 2024/25 financial year.
Revenue for the year to February 24, 2024 was £2.76 billion, slightly above expectations of £2.75 billion and above the previous year’s £2.49 billion.
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Group sales excluding VAT and fuel increased by 7.4% to £61.5bn, with underlying UK sales up 7.7%.
Tesco has a 27.3% share of the UK grocery market, up 40 basis points year-on-year, according to industry data.
The group’s shares have risen 9% in the last year, benefiting from its strategy of matching prices on key products with discounter Aldi and the popularity of its Clubcard loyalty scheme, which offers lower prices to members. ($1 = 0.7890 pounds)
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