Tesco in price pledge to shoppers as profits rise
Tesco has promised to deliver lower grocery prices for shoppers as it posted a rise in sales and profits.
The supermarket chain remains the UK’s biggest retailer despite tough competition from discounters Aldi and Lidl and said it had taken market share from its rivals
It reported a 13.5% leap in adjusted operating profits for the first half of its financial year to £1.4bn and said it expected the outlook for food inflation to continue to ease in the run-up to Christmas.
Like-for-like sales at its supermarkets were up 7.8% over the six months compared to the same period last year.
Chief executive Ken Murphy said: “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.”
The group declared an interim dividend of 3.85p, in line with its interim dividend policy at 35% of prior year full year dividend. It expects to deliver between £2.6bn and £2.7bn retail adjusted operating profit for the 2023/24 financial year.
Edinburgh-based Tesco Bank reported an adjusted operating profit of £65m, up 25%, primarily driven by strong income growth. It returned £250m to the group in a special dividend, reflecting the strength of the bank’s balance sheet. The bank is expected to report an adjusted operating profit of between £130m and £160m.