Tesco has seen sales and profits jump in its first half as it expects food inflation to continue to fall.
The grocer has hiked its profit guidance for the year to £2.6bn and £2.7bn, from its original forecast of £2.5bn.
The grocery giant’s like-for-likes advanced 7.8% – and 8.7% in the UK – in the half to 26 August as adjusted operating profit jumped 13.9% to £1.48bn. Total sales hit £30.75bn.
Tesco chief executive Ken Murphy said: “Food inflation fell across the half and while external pressures remain, we expect that it will continue to do so in the second half of the year,.
“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.”
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Looking forward, Tesco expects to deliver between £2.6bn and £2.7bn retail adjusted operating profit for the 2023/24 financial year.
Murphy added: “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.
“Our investments in value, and in improving more than 1,100 own brand products from pasta to fresh fish, are helping us to offer outstanding quality at great prices, all underpinned by market-leading availability.
“Customers are responding well, contributing to market share gains in store and online. We’re seeing the results at both ends of the basket, with strong growth in our Finest range as shoppers look to save by treating themselves at home, voting with their feet as they switch from premium retailers to Tesco.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
