Turnaround plans are working
Annual profits at Tesco have risen by 28 per cent as sales of fresh food have strengthened.
The group reported underlying earnings of £1.6bn for the year to 24 February while sales rose 2.8 per cent to £57.5bn.
Tesco boss Dave Lewis said: “This has been another year of strong progress, with the ninth consecutive quarter of growth.
“More people are choosing to shop at Tesco and our brand is stronger, as customers recognise improvements in both quality and value.
“All of this puts us firmly on track to deliver our medium-term ambitions and create long-term value for every stakeholder in Tesco.”
Richard Lim, Chief Executive, Retail Economics said: “A laser-like focus on the core UK food business continues to deliver impressive gains. Deeper price investment, a more focused range and further asset disposals have slowed the loss of market share and boosted further improvements in profitability.
“With household budgets under pressure, the supermarket appears to have benefited from shoppers trading down to own-brand labels which deliver more sustained profitability. Meanwhile, online growth continued to outstrip all other formats as both coverage, the speed of delivery and average basket values improved.
“With the Booker tie-up now complete, the grocer is well-placed to deliver cost-saving synergies with the newly formed business and take the discounters head-on.”