By Joe Hoppe

 

Tesco PLC said Wednesday that its pretax profit fell in the first half of fiscal 2023 on increased costs, and said guidance will be on the lower end of its forecast range for the full year.

The U.K.'s biggest grocer by market share made a pretax profit of 413 million pounds($473.9 million) in the six months ended Aug. 27, down from GBP1.14 billion a year earlier, on increased finance costs and higher cost of sales.

Revenue rose to GBP32.46 billion from GBP30.42 billion a year before.

The company said that postpandemic normalization has been compounded by cost-of-living-driven changes in customer behavior, but said its solid business performance and acceleration of its Save to Invest program have allowed it to maintain its guidance, albeit at the lower end of the range.

As a result, Tesco said it expects adjusted retail operating profit for the full year of GBP2.4 billion-GBP2.5 billion. The Tesco Bank business is expected to deliver an adjusted operating profit of around GBP120 million to GBP160 million.

In April, the company said it expects an adjusted retail operating profit in the range of GBP2.4 billion to GBP2.6 billion.

The company's board declared an interim dividend of 3.85 pence a share, up from 3.20 pence a year earlier.

Tesco also said it intends to deliver its original three-year savings plan a year early, and it was targeting around GBP1 billion in cumulative savings by the end of February.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

October 05, 2022 03:36 ET (07:36 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
Tesco (LSE:TSCO)
Historical Stock Chart
From Oct 2022 to Nov 2022 Click Here for more Tesco Charts.
Tesco (LSE:TSCO)
Historical Stock Chart
From Nov 2021 to Nov 2022 Click Here for more Tesco Charts.