Tesco has reaffirmed its reputation as the titan of supermarket chains by reporting a 20.3% increase in pre-tax profits to £2.6bn. The retailer attributes its strong performance to improved customer experience and changes to product ranges.
The results, for the 52 weeks to February 24, also saw an 11.6% increase in non-food sales and a 29.2% in online sales. Its international division grew sales by 17.9%.
Its core UK sales increased by 9% over the period, which the retailer says was boosted by a 40% increase in sales of organic food and the introduction of 2,000 premium lines.
Terry Leahy, chief executive, says: “These results demonstrate that we have again made good progress across the group, while making significant start-up investment in new businesses and coping well with challenging conditions in some markets.”
The retailer says that it has continued to make good progress with the four parts of its strategy of maintaining strong core UK sales, becoming an international retailer, developing its non-food arm and creating retailing services.