(Reuters) – Tesco raised its annual profit forecast on Thursday as Britain’s biggest supermarket group gained market share in the first half, giving it momentum ahead of the key holiday period year.
The group, which has almost 28% of the UK grocery market, said it now expects adjusted operating profit for the retail business, its main profit measure, to be “around” £2.9 billion. pounds (3.46 billion euros) for the 2024/25 financial year, compared to a previous forecast of “at least” 2.8 billion pounds.
“Our significant market share gains in the UK and Ireland over the past year are testament to our continued momentum,” said Ken Murphy, chief executive of Tesco.
For the first half, Tesco’s adjusted operating profit was £1.56 billion, up from £1.42 billion a year ago.
In the UK, like-for-like sales increased by 3.5% in the second quarter, after increasing by 4.6% in the first quarter.
Tesco’s market share rose 60 basis points to 27.8% in the 12 weeks to September 1 year-on-year, its highest level since January 2022, according to analysts at research firm Kantar .
On the London Stock Exchange, around 07:25 GMT, Tesco shares were up 2.20% at 363 pounds, compared to a gain of 0.20% for the FTSE at the same time.
(Reporting by James Davey; written by Kate Holton and Sarah Young; by Mara Mara Vîlcu, edited by Augustin Turpin)
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