12th Jun 2025 08:34
(Alliance News) - Tesco PLC on Thursday left its annual outlook unchanged, after it started off the financial year with first-quarter sales growth led by a strong performance in the UK.
The Welwyn Garden City-based food retailer said sales in the 13 weeks to May 24 amounted to GBP16.38 billion, rising 5.3% on-year, or 5.5% at constant currency, and ahead of Visible Alpha consensus of GBP16.1 billion.
Like-for-like sales were 4.6% higher annually, beating Visible Alpha consensus of 3.9%, and accelerating from 4.0% growth in the fourth quarter of the prior financial year.
"We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the group," Chief Executive Officer Ken Murphy said.
In response, shares in Tesco rose 1.5% to 391.20 pence each in London on Thursday morning. The wider FTSE 100 was 0.1% lower.
Like-for-like sales in the UK alone grew 5.1%, ahead of Visible Alpha consensus of 4.0%, while in Ireland, they rose 5.5%. Booker like-for-like sales were 2.0% higher and Central Europe like-for-like sales rose 4.1%.
UK market share rose 44 basis points year-on-year to 28.0% in the quarter with 24 consecutive four-week periods of share gains.
UK food sales climbed 5.9%, with a strong contribution from fresh food. Non-food sales were up 6.2%, with strong growth in home and clothing, benefiting from new and extended ranges as well as warmer weather.
Growth was reported across all channels, led by online, where sales rose 12% with the market share up 163bps.
CEO Murphy added: "In the UK we have continued to see market share gains and increased customer satisfaction," although he noted the grocery market "remains intensely competitive".
Tesco still expects adjusted operating profit of between GBP2.7 billion and GBP3.0 billion for the year, at best a 4.1% decline from GBP3.13 billion the prior year. It still predicts free cash flow within its medium-term guidance range of GBP1.4 billion and GBP1.8 billion.
By Jeremy Cutler, Alliance News reporter
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