Overview

• Tesco raised full-year adjusted operating profit guidance to £2.9–£3.1 billion from £2.7–£3.0 billion after first-half results came in slightly ahead of forecasts.
• Adjusted operating profit for the half reached about £1.67 billion, with UK like-for-like sales up 4.9% and group sales growth of roughly 5%.
• UK market share climbed to about 28.4% after 28 consecutive four-week gains, supported by price cuts, Aldi Price Match, Clubcard promotions and a warm summer.
• Net profit declined to around £950 million year on year as costs rose, with Tesco targeting £500 million of savings and citing £235 million from higher employer national insurance plus £90 million from new packaging levies.
• Management said competitive intensity remains elevated, noted Asda’s price cuts have not derailed performance, and signalled confidence in Christmas trading while cautioning that price battles could intensify.