Like-for-like (LFL) sales rose 1.0% to £16.8bn in the first quarter, excluding fuel. The UK saw growth of 1.8% to £12.6bn (2.3% expected), while Central Europe grew slightly slower at 0.8% to £1.1bn.
LFL sales at Booker’s fell 3.2%, with tepid growth in Food Logistics failing to offset declines in Tobacco, Catering and Retail.
Full-year guidance was reiterated, with underlying operating profits are expected to be between £3.0-3.3bn. Free cash flow is expected to land between £1.5-2.0bn.
Just under half of the £750mn share buyback program has been completed, with the remainder due by April 2027.
The shares were down 3.3% in early trading.
Our view
HL view to follow.
Tesco key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
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.