(Alliance News) - Tesco PLC on Wednesday announced that profit skyrocketed in its latest financial year as inflationary pressures reduced substantially.
The Welwyn Garden City, Hertfordshire-based supermarket chain said pretax profit surged to GBP2.29 billion in the financial year ended February 24, from GBP882 million a year prior.
Revenue climbed 4.4% to GBP68.19 billion from GBP65.32 billion. Cost of sales increased slower, by 2.1% to GBP62.84 billion from GBP61.52 billion.
The company announced a final dividend of 8.25 pence per share, bringing the total to 12.10p, up 11% from 10.90p paid for financial 2023.
On the back of the results, Tesco announced a new GBP1.0 billion share buyback programme to be conducted over the next 12 months.
It noted that has bought back shares worth GBP1.8 billion so far since launching its capital return programme in October 2021, including GBP750 million in the 12 months to April 2024.
Chief Executive Ken Murphy said: "Inflationary pressures have lessened substantially, however we are conscious that things are still difficult for many customers, so we have worked hard to reduce prices and have now been the cheapest full-line grocer for well over a year.
"We have continued to invest in helping customers where it matters most, cutting prices on more than 4,000 products and doubling down on our powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices."
Looking ahead, Tesco expects to generate retail free cash flow within its guidance range of GBP1.4 billion to GBP1.8 billion for the current financial year 2025, at least 13% lower than GBP2.06 billion generated for financial 2024.
Furthermore, the firm anticipates retail adjusted operating profit of at least GBP2.8 billion for financial 2025, up from GBP2.76 billion reported for financial 2024, which was 11% higher than GBP2.49 billion a year prior.
Tesco shares rose 0.9% to 290.00 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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