LONDON: Tesco, Britain’s biggest retailer, forecast a further increase in profit in its new financial year as strong demand and new customers helped it to post an 11% jump in 2023/24.
The supermarket group on Wednesday forecast retail adjusted operating profit, its key profit measure, of “at least” 2.8 billion pounds ($3.55 billion) for its 2024/25 year.
It made 2.76 billion pounds in the year to Feb. 24 2024, slightly ahead of guidance of 2.75 billion pounds and up from 2.49 billion pounds made in the previous year.
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Group sales, excluding VAT sales tax and fuel, rose 7.4% to 61.5 billion pounds, with UK like-for-like sales up 7.7%.
Tesco has a 27.3% share of Britain’s grocery market, up 40 basis points on the year, according to industry data.
The group, whose shares are up 9% over the last year, is benefiting from a strategy of matching the prices of discounter Aldi on key items, and the popularity of its Clubcard loyalty scheme, which provides lower prices for members. ($1 = 0.7890 pounds)
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