Tesco (TSCO) investor relations material

Executive summary

• Group like-for-like sales grew 2.9% over 19 weeks, with strong Christmas trading, UK market share at a decade high, and robust fresh food and online growth.

• Over £6 billion in sales in the four weeks to Christmas Eve; UK like-for-like sales up 6.6%; 340 new/improved own-brand Christmas products launched.

• Online channel grew 11% over 19 weeks, with Whoosh sales up 47% and significant customer acquisition during the festive period.

• ROI delivered a fourth consecutive year of market share gains, with food sales up 5.2% and five new stores opened.

• Customer satisfaction and UK market share reached decade highs after 32 consecutive periods of gains.

Financial highlights

• Group-adjusted operating profit expected at the upper end of £2.9bn–£3.1bn guidance.

• Group sales (excluding VAT and fuel) reached £24,969m, up 3.6% at constant rates and 4.3% at actual rates year-over-year.

• UK sales were £18,716m, up 4.4%; ROI sales £1,265m, up 6.7%; Central Europe sales £1,757m, up 2.3%; Booker sales £3,231m, down 1.3%.

• Free cash flow expected within £1.4bn–£1.8bn medium-term guidance.

• Promo percentage increased slightly year-over-year, from 33% to 34% over the 19-week period.

Outlook and guidance

• Confidence in delivering at the upper end of profit guidance due to strong Christmas performance.

• All guidance provided on a 52-week basis for comparability, despite FY 25/26 being a 53-week year.

• Ongoing investment in value, technology, and store estate to support future growth.

• Inflation over Christmas was 4%, with conscious investment in value to drive market share gains.

• Market expected to remain competitive, with continued focus on adapting to consumer needs and trends.