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.
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)