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Tesco raises annual profit forecast as sales edge higher

The UK grocer reported underlying profit up 6.5% to £1.8bn for the first half, with online trade up 8%.

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Tesco raised its annual profit forecast, saying consumer confidence has stayed relatively resilient this year despite geopolitical tensions, according to The Guardian Business. The company cited ongoing uncertainty linked to the conflict in Iran, which it said began in late February, as earlier risks that could weigh on profits.

For the first six months of its financial year, Tesco said sales rose 2% to £33.8bn. Underlying profit increased 6.5% to £1.8bn, the company added, supported by stronger growth in key areas of its business.

Tesco said food sales performed well, while its Booker wholesale arm continued to have difficulties. The grocer pointed to online sales rising 8% and revenue from its premium own-label Finest range increasing 9%.

Earlier this year, Tesco warned that profits could fall in the year ahead due to the increased uncertainty from the Iran conflict, The Guardian Business reported. The latest results describe growth momentum despite that backdrop.

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