Tesco forecasts full-year profit at upper end after Christmas sales rise

Tesco said it now expects adjusted operating profit at the upper end of prior guidance and reported a 3.2% rise in underlying UK sales over the Christmas trading period.

Tesco reported stronger Christmas trading and raised its profit outlook. The group now expects adjusted operating profit at the upper end of the 2.9 billion to 3.1 billion pounds range it set in October. Underlying UK sales for the key Christmas period rose 3.2%. The company said it has been gaining market share amid subdued consumer confidence and high inflation. Key facts: - Tesco said adjusted operating profit is expected at the upper end of its 2.9–3.1 billion pound guidance. - The retailer reported a 3.2% rise in underlying UK sales for the Christmas trading period. - Tesco reported 3.13 billion pounds of adjusted operating profit in 2024/25. - Industry data showed Tesco's UK grocery market share reached 28.7%, up 20 basis points and the highest since March 2015. - Like-for-like UK sales rose 3.9% in the third quarter to Nov. 22 and growth slowed to 3.2% in the six weeks to Jan. 3. - Tesco's shares have risen about 22% over the last year. Summary: The update indicates Tesco continued to outperform the wider UK grocery market and expects adjusted operating profit at the upper end of its guidance. Undetermined at this time.