Tesco Lifts Profit Guidance After Strong Christmas Period -- Update
11 Janeiro 2024 - 5:02AM
Dow Jones News
By Michael Susin
Tesco raised its profit guidance for the second time this fiscal
year after it saw stronger-than-expected volume growth in the U.K.
market during Christmas.
The U.K. grocer on Thursday said it expects retail adjusted
operating profit--the company's preferred metric, which strips out
exceptional and other one-off items--for fiscal 2024 of around 2.75
billion pounds ($3.50 billion). This compares with a previous
guidance range of GBP2.6 billion to GBP2.7 billion, and GBP2.49
billion in fiscal 2023.
Retail free-cash-flow generation is expected to be around GBP2.0
billion. Previously the company expected between GBP1.8 billion and
GBP2.0 billion.
Bank adjusted operating profit guidance remains unchanged at
between GBP130 million and GBP160 million.
Like-for-like retail sales rose 6.4% on year in the 19 weeks
ended Jan. 6. They rose 6.6% in the third quarter and 6.0% over the
Christmas period.
In the U.K., Tesco's like-for-like sales rose 7.5% in the
19-week period, while in Central Europe they fell 0.3%. Sales
increased 6.8% in the U.K. during the Christmas period.
The company said it showed a robust market share performance in
the U.K. market, with consistent volume growth and particular
strength in the fresh food segment.
"We offered a full Christmas dinner for just GBP2.09 per person,
helping to drive record sales in the weeks leading up to Christmas
and further market share gains," Chief Executive Ken Murphy
said.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
January 11, 2024 02:47 ET (07:47 GMT)
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