Tesco posts 3% sales increase in Q1

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Tesco posts 3% sales increase in Q1

UK retailer Tesco saw a 3.3% increase to £15.3 billion (US$19.4 billion) in sales for the first fiscal quarter of 2024, the company said in a recent update. At constant exchange rates, the increase was 3.8%. Like-for-like sales (LFL) improved by 3.4%.

Chief executive Ken Murphy said the company recently launched more than 100 new own brand products, which aim to help customers “celebrate a great summer of sport.”

“We continue to be the cheapest full-line grocer and are the most competitive we’ve ever been, with our value, product quality and service driving better brand perception and customer satisfaction,” Murphy said in the release.

Sales in the United Kingdom reached £11.4 billion (US$14.4 billion) and grew by 4.6% like-for-like, while sales in the Republic of Ireland (ROI) increased by 4.4% LFL to £731 million. Booker's like-for-like sales fell by 1.3% . LFL sales in Central Europe were up 0.6%.

Additionally, Tesco Bank reported a 59.9% sales improvement to £271 million. Total group sales, including Tesco Bank, were £15.6 billion (US$19.8 billion), scoring a 3.9% increase.

For 2024-25 financial year, Tesco expects adjusted retail operating profit of at least £2.8 billion. The firm also forecasts total adjusted operating profit from the Tesco Bank business of approximately £80 million. 

Tesco expects to generate free cash flow from retail within its guidance range of £1.4 billion and £1.8 billion.

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