Tesco PLC on Thursday affirmed annual guidance as the grocer hailed ‘strong growth’ over Christmas.
Like-for-like sales in the 19 weeks to January 7 rose 6.4% year-on-year. The figure excludes VAT and fuel.
The period encompasses Tesco’s third quarter to November 26, when like-for-like sales climbed 5.7%, and the six weeks to January 7, when sales climbed 7.9%.
Particularly in the UK, like-for-like sales in the 19 weeks to January 7 increased by 5.3%. ‘Strong performance driven by focus on value & quality, with particular strength in fresh food (up 8.1%), with strong execution across every part of the shopping trip including market-leading availability’, the supermarket explained.
Chief Executive Ken Murphy said: ‘I’m really pleased with our performance over this period - particularly the further strong growth at Christmas on top of the exceptional growth of the last few years. I’m extremely proud of the way Tesco has stepped forward to help customers dealing with tough times this Christmas. By delivering relentlessly on the strategic priorities that we set out 18 months ago, we have made sure that customers know that they will benefit from great value and quality in every part of their basket, however they choose to shop with us.’
Looking ahead, Tesco backed annual guidance, expecting retail adjusted operating profit between £2.4 billion and £2.5 billion, as well as retail free cash flow of at least £1.8 billion.
Retail adjusted operating profit in financial 2022 totalled £2.65 billion, while group adjusted operating profit amounted to £2.83 billion.
The retail figure excludes Tesco Bank, where Tesco still expects adjusted operating profit between £120 million and £160 million, swinging from a loss of £176 million the year prior.
The company said it will report full-year results on April 13.
In October, Tesco had reported that revenue rose 6.7% to £32.46 billion for the 26 weeks ended August 27, from £30.42 billion the year before. Pretax profit, however, shrunk 64% to just £413 million from £1.14 billion.
Tesco shares were down 0.1% at 243.43 pence each on Thursday morning in London.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
