Britain’s biggest grocer posted a 4.3% like-for-like sales increase in the first half of its financial year, with growth across all of its markets.
Group adjusted operating profit at the company was up 1.6% at constant rates in the 26 weeks ended August 23, 2025 versus the same period last year. This included a 2.1% increase for its UK and Ireland business despite the increase in employer’s national insurance payments and additional costs from the new packaging levy.
The retailer cited a better-than-expected response to its targeted investments in pricing as well as an extended period of warm weather. The company now expects full-year group adjusted operating profit to be in the range of £2.9bn to £3.1bn, up from a previous range of between £2.7bn and £3bn.
Group sales excluding VAT and fuel were up by 5.1% driving its UK market share to 28.4%, the retailer said. This means Tesco has now gained share for 28 consecutive four-week periods.
Tesco has also been aiming for an approximate £500m in savings from its Save to Invest programme, which is marked for improving its customer proposition and dealing with increased costs. The group’s adjusted operating profit margin was down by 10 basis points (0.10 percentage points), meaning sales increased faster than profit.
“The extension of our savings programme is helping offset new operating cost inflation, including increased national insurance and other regulatory costs. Sales have grown across all our businesses, with customer satisfaction scores improving once again,” said chief executive Ken Murphy in a statement released alongside the results.
The retailer said it cut the prices of 6,500 products in the UK versus last year, with an average cost reduction of 9%.
“Competitive intensity remains high, and with continued pressure on household budgets, we remain committed to ensuring customers get the best possible value by shopping at Tesco,” said Murphy.
Tesco cited a “strong volume performance” in the country from fresh food after launching 470 new products in store. Sales of its premium Finest range grew by 16% year on year.
Online sales grew by 11.4% and now represent 14% of its UK revenue. The company said 788,000 customers are now subscribers to its Delivery Saver service.
Group adjusted profit at the company’s Booker wholesale business was up by 0.6% to reach £162m. The company is now treating Booker as a separate segment within its results, where previously it had been included as part of the UK and Ireland business.
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