Tesco reports 2023/24 profit of £2.3bn

Tesco reports 2023/24 profit of £2.3bn

UK retailer Tesco has announced its preliminary results for 2023/24, reporting a profit of nearly £2.3 billion before tax.

Tesco reported “strong sales” as inflation fell throughout the year.

The supermarket said it had “strong sales performance across the Group”, with retail like-for-like (LFL) sales up 6.8%. Its statutory revenue for the year increased 4.4% to £68,187 million, with a retail adjusted operating profit of £2,760 million, up 10.9% at constant rates.

Tesco also said it had a “strong retail free cash flow” of £2,821 million, up 100.1%, and its net debt reportedly reduced by £729 million.

Ken Murphy, Tesco CEO, said: “This strong performance reflects the hard work of colleagues across the whole Tesco Group, and their commitment to serving our customers. Customers are choosing to shop more at Tesco, which is reflected in growing market share as they respond to the improvements we’ve made to the value and quality of our products.

“Inflationary pressures have lessened substantially, however we are conscious that things are still difficult for many customers, so we have worked hard to reduce prices and have now been the cheapest full-line grocer for well over a year.

“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.

“Customer perception of the quality of our products is growing ahead of the market and we continue to win customers from premium retailers, with sales of Tesco Finest now exceeding £2 billion.

“We have strong momentum in our business, and are encouraged by signs of improving consumer sentiment. We’re excited about the opportunities ahead, with the right plans to keep winning with customers, as well as a great team to deliver them.”

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