UK supermarket Tesco has released its results for H1 2024/25, reporting a 15.6% rise in its operating profit.
It said it had achieved group sales of £31,463 million, up 3.5% on the year from £30,401 million. Its adjusted operating profit rose from £1,426 million in H1 2023/24 to hit £1,649 million, a 15.6% increase at actual rates.
Revenue went from £33,801 million in H1 2023/24 to £34,773 million, a 2.9% increase, while profit before tax rose 19.9% from £1,161 million to reach £1,392 million.
The retailer said its priorities for the future were creating value, loyalty and providing convenience to its customers through its loyalty card and convenience store offerings.
Ken Murphy, CEO of Tesco, said: “We’ve been working really hard to offer our customers the best possible value, quality, and service and they are shopping more at Tesco as a result. We have lowered prices on thousands of lines, launched or improved over 860 products in partnership with our suppliers and growers, and our customer satisfaction scores continue to improve across a broad range of measures.
“The combination of price, quality and innovation means we are as competitive as we have ever been, and we have been the cheapest full-line grocer for nearly two years. Our strong UK and ROI market share gains across the last year demonstrate our continued momentum. I want to say a big thank you to all my Tesco colleagues for their hard work serving customers so well. As we approach the Christmas season, we are looking forward to sharing the quality of our festive food with customers, and can’t wait for them to taste it.”
Outlook for 2025
Tesco said its investments had delivered volume growth ahead of expectations, and due to its performance, the retailer now expects to deliver around £2.9 billion retail adjusted operating profit for the 2024/25 financial year. Previously, this figure was £2.8 billion.
Murphy concluded: “We are in good shape, with volume growth delivering strong financial performance. This builds on our track record of delivery for all our stakeholders. Our strong momentum allows us to continue to focus on value, quality, innovation, and the broader customer experience, whilst investing in growth opportunities in a disciplined, returns-focused way.”
