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Tesco, Britain's biggest supermarket, expects profits to continue to rise this year as it attracts more shoppers to its stores and improves consumer sentiment.
FTSE 100 companies' annual sales to February rose 7.2% to £61.5bn as inflation pressures „substantially reduced“, while retail adjusted operating profits, excluding Tesco Bank's results, rose 10.9% to £2.76. It became. bn. The company expects this to rise to at least £2.8bn this year.
Pre-tax profits soared from £882m to £2.3bn. The company also announced plans to buy back £1bn of shares over the next 12 months. Sold banking business to Barclays.
CEO Ken Murphy said customers are choosing to spend more. tesco„that is reflected in increased market share,“ and its sales were boosted by its premium series, Finest.
He added: „There is strong momentum in our business and we are encouraged by signs that consumer sentiment is improving.“
Mr Murphy said food inflation was expected to stabilize in the low single digits for the rest of the year, although cocoa, potato and coffee inflation remained sticky. “We think the rest of the year is stable and those low single digits are the premise of our plans.”
„Tesco delivered a series of positive results, with sales growth supported by persistently high food inflation and a recovery in volumes in the UK,“ said Bernstein's William Woods.