Tesco vows to rein in prices as profits treble amid rising sales
Tesco profits more than trebled last year amid rising sales and a fall in Covid-related costs.
The UK’s largest supermarket chain reported pre-tax profits of £2.03bn, up from £636m the previous year.
Group sales, excluding fuel, rose by 2.5% to £54.8bn, while in the UK retail sales rose by 2.3% year on year.
However, Tesco said performance would be affected by the the investment needed to keep prices down.
Chief executive Ken Murphy said: “Clearly, the external environment has become more challenging in recent months.
“Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check – working in close partnership with our suppliers, as well as doing everything we can to reduce our own costs.”
Mr Murphy added that Tesco was managing to keep the rise in the cost of living a “bit under the number for the overall market”.
He said strong product availability had been maintained but added that products such as sunflower oil were a challenge due to the war in Ukraine.
Tesco online business was lower as sales declined by 6.5% because some customers chose to return to shopping in stores as the pandemic eased.