Tesco reports strong Q2 results driven by UK & ROI

Tesco has reported financial results for second quarter showing group sales of £28.3bn, a rise of 12.8%.

For the UK & ROI LFL sales rose by 3.8%, strengthening from 3.5% in 1Q to 4.2% in 2Q, Including Tesco UK LFL sales were up by 2.3% (1Q: 2.1%; 2Q: 2.5%) and Booker LFL sales rose by 14.7% (1Q: 14.3%; 2Q: 15.1%).

During the period, the company made significant investment in ‘Exclusively at Tesco’ brands, with 81% of the roll out complete.

Group operating profit before exceptional items and amortisation of acquired intangibles were up by 24.4% to £933m. UK & ROI profit stood at £685m, up 47.6%; incl. first-time consolidation of £97m Booker profit and £16m synergies.

Dave Lewis, Chief Executive, said, 'We have made a good start to the year. The step up in Q2 is driven mainly by the UK & ROI and delivers our eleventh consecutive quarter of growth.

'At the same time, we have made further strategic progress. We completed our merger with Booker in March and are delighted with performance so far. We announced a strategic alliance with Carrefour in July which goes live this month. And we are now more than half-way through the biggest own brand re-launch in our nearly 100-year history, including a significant investment in over 300 new ‘Exclusively at Tesco’ products at market-leading prices.

'We are firmly on track to deliver our medium-term ambitions and are continuing to improve the quality and value of our offer for customers in all of our markets. In doing so, we are well-positioned to deliver strong, sustainable returns for shareholders.'