Group like-for-like sales were up 1%, with UK sales up 1.5% (inc. Food 2.4%). Group adjusted operating profit was up by 6.3% at constant rates to £1,783 million.
Tesco said this reflected the UK and ROI category increasing by 6% to reach £1,557 million, with improved sales mix and growth in newer income streams offsetting operating cost inflation. Booker sales were up 0.1% to reach £163 million, while Central Europe increased by 38.4% to £63 million.
Statutory operating profit reached £1,709 million, up by 6.6% at actual exchange rates, while net debt fell by 5% on the year to £(10,037) million.
Worldpanel UK reported Tesco’s market share as 27.8%, and Tesco said its UK Food like-for-like sales were up by 2.4% following the launch of more than 800 products. Its Finest range delivered “strong” sales growth, said Tesco, up by 8.9% in the UK, and online sales increased by 8.4%.
Ken Murphy, chief executive of Tesco, commented: “Customers are at the heart of everything we do, and I am proud that we have achieved our highest-ever customer satisfaction score, reflecting our continued focus on value, quality and service. Our strong performance enables us to keep investing in the customer offer and the capabilities that will drive future growth. None of this would be possible without the hard work and dedication of our colleagues and suppliers, whose drive and commitment make a real difference for customers every day.
“Against an uncertain external backdrop, we have continued to invest in giving customers the very best value for money. Alongside maintaining our strong value proposition, we have continued to innovate across all our ranges, launching over 800 new and improved products during the half. This included broadening ranges that make healthy, affordable eating even more accessible, such as our fibre-enriched bakery range. Finest continues to outperform, with sales up 9%.”
“Our digital channels are important growth drivers for Tesco, with online sales growing 8% in the half.”
Murphy continued: “Our digital channels are important growth drivers for Tesco, with online sales growing 8% in the half. We are complementing our leading position in grocery home shopping with strong growth in Whoosh, up 37% in the half and on track to deliver sales of over £500 million this year. Our recent partnerships with Uber Eats and Deliveroo are further extending our unique rapid delivery reach, and our new F&F website is helping even more customers discover and shop our full range of clothing.
“We are also making strong progress on AI-enabled personalisation, extending Your Clubcard Prices and beginning the customer rollout of our meal planning assistant, helping customers manage their busy lives. Tesco Media grew strongly in the half, attracting new advertisers and offering improved analytics and automation through an enhanced self-service platform.
“Our focus remains on helping customers get the best possible value from their weekly shop. Looking ahead, we’re excited to bring our new Christmas ranges to customers and help them enjoy a great festive season. By putting customers first and delivering against our strategic ambitions, we will continue to create long-term value for all our stakeholders.”
