Tesco Lifts Guidance on Robust Volume Growth

By Michael Susin

Tesco raised its guidance for fiscal 2025 after delivering volume growth ahead of its expectations for the first half.

The U.K. grocer on Thursday said it expects retail adjusted operating profit--the company's preferred metric, which strips out exceptional and other one-off items--for fiscal 2025 of around 2.9 billion pounds ($3.85 billion) compared with the previous target of at least 2.8 billion pounds. This compares with a 2.94 billion pound estimate taken from a company-compiled consensus based on 14 analysts' estimate.

Tesco reported a pretax profit of 1.39 billion pounds for the six months ended Aug. 24 compared with 1.16 billion pounds in the same period a year earlier.

Revenue rose to 34.77 billion pounds from 33.80 billion pounds.

The increase was driven by better-than-expected volume growth, with comparable retail sales up 2.9%, reflecting significant investments in value, quality and service, it said.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

October 03, 2024 02:46 ET (06:46 GMT)

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