Tesco plc has declared an operating profit of £2.6 billion for the year to 25th February 2022, which is down 6.9% on the same time last year. Its sales, however, were 5.3% higher at £57.6 billion.

Chief executive, Ken Murphy said: “Our results reflect our continued investment in delivering great value and quality for our customers, whilst at the same time looking after our colleagues.  This is despite unprecedented levels of inflation in the prices we have paid our suppliers for their products, and the cost of running our own operations.  I am very proud of the way the Tesco team has responded to these challenges and would like to thank every colleague for the contribution they have made.

“The resilience and agility that we have developed over the last few years has created a sustainable competitive advantage that leaves us well-placed to deal with any challenges that may arise.  It has enabled us to deliver another strong performance across the Group, whilst continuing to make strategic progress.

“Perhaps most importantly, over the last few years we have fundamentally repositioned our value proposition.  We are the most competitive we have ever been, with our market-leading combination of Aldi Price Match, Clubcard Prices and Low Everyday Prices changing the way customers perceive value at Tesco.”

He continued: “We continue to target growth through making Tesco the most convenient place to shop.  This year we have opened 91 stores across the Group and are serving over 450 net new Booker retail partners.  Booker delivered its strongest year ever, helped by an outstanding catering performance as even more customers benefited from its unbeatable choice, price and service. Our acquisition of nine Joyce’s stores in the Republic of Ireland and, more recently, the Paperchase brand in the UK signals our appetite to find new, value-creating growth opportunities in our core markets.

“Our focus on customer satisfaction, market share and free cash flow is working.  It is delivering strong results and enabling us to re-invest in the business, maintain a strong balance sheet and return cash to shareholders.  We have already bought back over £1 billion worth of shares and have today announced a further £750 million worth over the next twelve months. 

“I am really confident that by investing to give customers the best possible value and continuing to look after our colleagues, we will create further significant value for every stakeholder in Tesco.”

The full preliminary results statement can be seen here.