UK supermarket Tesco has released its results for H1 2024/25, reporting that its volume growth was “ahead of expectations”.
Tesco achieved group sales of £31,463 million, an increase of 3.5% on the year from the H1 2023/24 result of £30,401 million.
The supermarket stated that it had “continued to work with its supplier partners to lower prices for customers” as its statutory profit after tax hit £1,022 million, up from £887 million a year earlier.
The retailer reported an adjusted operating profit of £1,649 million, up 15.6% from H1 2023/24’s rate of £1,426 million. Tesco said this was primarily driven by its retail operations, stating that “strong growth” offset investments in customer offer and colleague pay.
Outlook for the rest of the year
It said its investments had delivered volume growth “ahead of expectations”. As a result of this, the retailer now expects to deliver around £2.9 billion retail adjusted operating profit for the 2024/25 financial year.
Ken Murphy, CEO of Tesco, said: “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. 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.
“Our strong momentum allows us to continue to focus on value, quality, innovation and the broader customer experience.”
“The combination of price, quality and innovation means we are as competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years. Our strong UK and ROI market share gains across the last year demonstrate our continued momentum. I want to say a big thank you to all my Tesco colleagues for their hard work serving customers so well. As we approach the Christmas season, we are looking forward to sharing the quality of our festive food with customers, and can’t wait for them to taste it.
“We are in good shape, with volume growth delivering strong financial performance. This builds on our track record of delivery for all our stakeholders. 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.”
