From Morningstar: 2024-10-03 10:30:00

Tesco reported strong interim results for 2024/2025, with top-line profits driven by volume growth. Retail sales were up 2.9%, with UK sales up 4.0% and Ireland sales up 4.7%. Booker sales declined by 1.9%, offset by digital growth of 9.3%. Morningstar Metrics show economic moat as none, fair value estimate at GBX 316.00, and three-star rating in the Consumer Defensive sector.

In the UK, Tesco gained market share to 27.8%, up 62 basis points from last year. Ireland also saw market share increase to 25.3%, up 88 basis points. Central Europe showed improvement with sales up 0.6%. Operating profit rose by 15.6%, driven by retail operations.

Combined UK and Ireland operating profit was up 9.8%, and Central Europe operating profit up 6.5%. Fiscal 2025 outlook for retail adjusted operating profit was raised to £2.9 billion. Tesco reaffirmed its medium-term guidance for retail cash flow between £1.4 billion to £1.8 billion. Fair value estimate remains at 316p, highlighting Tesco’s strong position in the grocery sector.



Read more at Morningstar: Tesco Profitability Improves As Inflation Cools