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Tesco (H1 results): full-year guidance slightly raised

Tesco’s managed to grow both sales and profit in the first half despite a tough market
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Tesco’s group sales increased by 5.1% in the first half to £33.1bn reflecting increased volumes and market share gains.

Underlying operating profit growth was slower, rising just 1.6% to £1.7bn, reflecting cost inflation and a focus on customer valueefforts to keep prices competitive.

Free cash flow was up 2.9% at £1.3bn. Net debt came in 3.8% lower at £9.9bn.

The full-year guidance range for underlying operating profit has been raised to £2.9bn-£3.1bn, an increase of 5% at the mid-point.

The interim dividend was upped by 12.9% to 4.8p per share.

The shares were up 1.7% early trading.

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HL view to follow.

Tesco CCL key facts

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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.

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Written by
Derren Nathan
Derren Nathan
Head of Equity Research

Derren leads our Equity Research team with more than 15 years of experience in his field. Thriving in a passionate environment, Derren finds motivation in intellectual challenges and exploring diverse ideas within his writing.

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Article history
Published: 2nd October 2025