Tesco Backs Guidance After Volume Growth Lifts Sales
By Elena Vardon
Tesco said its sales increased over the first quarter of fiscal 2025, driven by strong volume growth as inflation eased, and maintained its outlook for the year.
The U.K.'s largest grocer by market share on Friday posted 15.305 billion pounds ($19.53 billion) in group retail sales excluding value-added tax and fuel for the 13 weeks ended May 25. Like-for-like group retail sales grew 3.4% over the period, it said.
Sales in the U.K. rose 4.6% on a like-for-like basis in the quarter, and edged up 0.6% in central Europe.
"Following another strong quarter, we're pleased to reiterate our guidance for the full year, with sales trends in line with our expectations and the business well-positioned for the months ahead," said Chief Executive Ken Murphy.
The supermarket chain guided for retail adjusted operating profit--its preferred metric, which strips out exceptional and other one-off items--of at least GBP2.8 billion. On top of this, it expects to make around GBP80 million from its insurance and money services activities, which are the businesses it retained from the sale of its banking branch to Barclays earlier in the year. This compares with a GBP2.94 billion estimate taken from a company-compiled consensus.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
June 14, 2024 02:29 ET (06:29 GMT)
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