Supermarket chain Tesco has reported a return to positive volume growth and strong sales and profit for the full year.
Pre-tax profit for the 12 months to 24 February 2024 increased to £2.3bn, up from £882m a year earlier, with retail adjusted operating profit of £2.8bn.
Revenue (excluding VAT and fuel) was up 4.4% to £68.2bn.
Like-for-like food sales in the UK rose by 7.7% and sales of premium-range Tesco Finest products surpassed £2bn, growing by 15.7% during the year. One in four customer baskets contained a product from the Finest range over the Christmas period.
After a prolonged period of high inflation, chief executive Ken Murphy said that price inflation in groceries had “lessened substantially”. However, he acknowledged that “things are still difficult” for many households.
“We have continued to invest in helping customers where it matters most, cutting prices on more than 4,000 products and doubling down on our powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices,” Murphy added.
Despite strong competition, Tesco — the UK’s biggest supermarket chain — gained further market share during the year.
In the 2024/25 financial year, Tesco expects to generate retail adjusted operating profit of at least £2.8bn. The company will continue its cost-cutting plan, targeting a further £500m of efficiency savings.
