Tesco shows growth in interim results

Tesco has posted its Interim Results 2016/17 showing positive like-for-like sales and volume growth in all regions across the group.

The company has seen UK like-for-like sales growth of 0.6% and total group like-for-like sales growth of 1%.

UK volumes have increased by 2.1%, and transactions rose by 1.6%. International volumes jumped by 3.3%, with transactions up by 0.3%.

In the UK, all key customer metrics have shown improvment relative to the market.

A very strong improvement in UK supplier satisfaction has been seen, standing at 78% (up from 51% in 2014/15).

The buiness is on track to deliver £1.2bn operating profit before exceptional items for the full year.

Tesco’s operating profit, before exceptional items, is up by an impressive 60% in the first half.

Also, the company’s exclusive fresh food brands are performing ahead of plan.

Dave Lewis, Chief Executive, said, ‘We have made further strong progress in the first half, with positive like-for-like sales growth across all parts of the Group as we re-invest in our customer offer whilst rebuilding profitability in a sustainable way.

‘The entire Tesco team is focused on serving shoppers a little better every day. We are more competitive across our offer. Prices are more than 6% lower than two years ago, availability and service have never been better and our range is more compelling. Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere.

‘Whilst the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilising the business and positioning us well for the future. Today, we are sharing the plans we have in place to become even more competitive for our customers, even simpler for colleagues and an even better partner for our suppliers, whilst creating long-term, sustainable value for our shareholders.’