The adjusted working revenue rose 1.6 per cent at fixed charges to £1.67 billion (~$2.25 billion), whereas adjusted diluted earnings per share climbed 6.8 per cent to fifteen.43 pence. The firm declared an interim dividend of 4.8 pence, up 12.9 per cent YoY.
British retailer Tesco PLC has reported group sales of £33.05 billion (~$44.62 billion) in H1 2025–26, up 5.1 per cent YoY, with adjusted working revenue rising 1.6 per cent to £1.67 billion (~$2.25 billion) and EPS up 6.8 per cent to fifteen.43 pence.
UK market share grew to twenty-eight.4 per cent.
CEO Ken Murphy highlighted sturdy worth, high quality, and digital progress driving sustained buyer loyalty.
Tesco’s UK and Return on Investment (ROI) division posted an adjusted working revenue of £1.47 billion, up 2.1 per cent, whereas Booker delivered £162 million, up 0.6 per cent. Central Europe declined 11.2 per cent to £44 million. Free money stream rose 2.9 per cent to £1.3 billion, reflecting sturdy sales and disciplined capital administration. Net debt elevated to £9.88 billion resulting from share buybacks, sustaining the web debt/EBITDA ratio at 2 instances, Tesco PLC stated in a press launch.
Customer satisfaction strengthened additional, with UK market share up 77 foundation factors (bps) YoY to twenty-eight.4 per cent and Republic of Ireland share rising 11 bps to 23.7 per cent. Brand notion improved by 96 bps, with positive factors in satisfaction, worth, and high quality, outperforming rivals throughout all six YouGov measures. Tesco additionally enhanced its worth place, significantly on incessantly bought objects, and achieved its highest internet promoter rating in six years.
Supporting sustainability, Tesco launched round £10 million in incentives for greater than 400 UK farmers to encourage environmental and animal welfare progress. Additionally, Insurance and Money Services recorded an adjusted working revenue of £100 million, up £6 million YoY, supported by partnership earnings and price management.
“I am pleased with our first half performance, which builds on already strong momentum. Our market share gains in the UK are a particular highlight and reflect the decisive action we took at the start of the year to further invest in value, quality and service,” stated Ken Murphy, chief govt at Tesco. “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.”
“The steps we have taken to keep prices down for customers have improved our price position relative to the market. We have continued to enhance quality across all our ranges, including Finest, which is now in its third year of double-digit sales growth. Our summer ranges also benefited from over 470 new products, and we continued to deliver market-leading availability,” added Murphy.
Looking forward, Tesco raised its full-year adjusted working revenue steerage to £2.9–£3.1 billion, up from £2.7–£3.0 billion, whereas sustaining its free money stream forecast of £1.4–£1.8 billion.
“We are also continuing to invest in our long-term growth, leveraging technology to drive more personalised engagement through Clubcard and deeper retail media reach across channels and suppliers. Our online business is going from strength to strength, enhanced by the recent launch of F&F online and continued growth in Whoosh, our rapid delivery service,” stated Murphy.
“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. As we continue to invest, we are creating sustainable value for all our stakeholders. Our colleagues are central to everything we do, and I would like to thank them all for the role they have each played in delivering for our customers,” he concluded.
Fibre2Fashion News Desk (SG)