Tesco Half-Year Report 2023
Statutory profit performance reflects prior year impairment charge:
- Statutory revenue £34.1bn, up 5.0% at actual rates, with fuel sales down (20.5)% due to lower retail prices
- Statutory operating profit £1,482m, up 105.5% and profit before tax £1,217m up 207.3%, primarily reflecting last year’s £(626)m non-cash impairment charge, with no charge in the first half of the current year, and strong trading performance
Continuing to offer customers great value, underpinned by focus on quality:
- Consistently the cheapest of the full-line grocers across the half, with our powerful combination of Aldi Price Match on more than 650 lines, over a thousand Low Everyday Prices locked to January 2024 and exclusive Clubcard Prices deals
- Prices cut on c.2,500 products by the end of the half, from bread to broccoli, with average saving of c.12%
- Clubcard Prices on over 8,000 products across the store, saving customers up to c.£390 per year
- Investment in quality and product innovation, launching 335 brand new products and reformulating 1,150
Group sales increased by 8.4% at constant rates, with growth across all segments. The impact of inflation was evident across all markets, although eased across the half as we worked hard to ensure that savings from falling global commodity prices were passed onto customers. Customer demand held up well in response to our ongoing focus on offering great value and quality and sales volumes were stronger than we had anticipated. Group revenue increased by 4.6% at constant rates, including a (20.6)% decline in fuel sales, primarily due to lower selling prices year-on-year.
