Tesco profits have surged as CEO Ken Murphy said “inflationary pressures have lessened substantially”.
Pre-tax profit for the full year to 24 February skyrocketed 159.5% to £2.3bn up from £882m last year, while group sales jumped 7.4% to £61.4bn.
Murphy said that while Tesco is “conscious that things are still difficult for many customers,” it has “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“.
As a result, UK food sales were up 9.3% at the grocer, with volume growth reported in the second half of the year.
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During the year, Tesco launched over 1,000 new products and improved around 2,700 existing lines as Murphy said that “customer perception of the quality of our products is growing ahead of the market”.
The grocer has seen 19 consecutive periods of net switching gains from the premium retailers as sales of its Tesco Finest range now exceed £2bn.
Looking ahead, Tesco expects retail adjusted operating profit of at least £2.8bn for the 2024/25 financial year.
Murphy added: “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.”
