Tesco raises lower end of full-year profit forecast

Tesco raised the lower end of its full-year adjusted operating profit forecast after reporting a 6.3% increase in first-half profit, as the UK supermarket group said shoppers remained relatively resilient while continuing to seek value. The company reported adjusted operating profit of £1.783 billion for the 26 weeks to August 29, compared with the same period a year earlier. It now expects full-year adjusted operating profit of £3.15 billion to £3.30 billion, up from its previous range of £3.00 billion to £3.30 billion. The figures and outlook were reported by Tesco. Sales excluding fuel and value-added tax totalled £33.8 billion, up 1% on a like-for-like basis, Tesco said. UK like-for-like sales rose 1.5%. The company said consumer confidence had remained relatively resilient, although ongoing geopolitical tensions continued to create uncertainty, and that it remained focused on value for customers. Online grocery sales in the UK grew 8.4% in the first half, while sales through Whoosh, Tesco’s rapid-delivery service, rose 37%, the company reported. Its Finest premium range recorded UK sales growth of 9%.