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(Sharecast News) - UK supermarket chain Tesco on Thursday lifted the lower end of annual guidance and its share buyback programme after interim profits jumped 6.5% to £1.78bn, sending shares in the firm more than 6% higher in a weak London market.
The company now expects adjusted operating profit of between £3.15bn and £3.30bn, compared with the £3.0bn to £3.3bn range outlined in April. It also increased its share buyback to £950m from £750m.
Group like-for-like sales rose 1.0% in the six months to August 29, with the UK increasing 1.5%. Group sales rose 2% to £33.8bn.
"While consumer confidence has remained relatively resilient in the first half of the year, ongoing geopolitical tensions continue to create uncertainty," Tesco said.
CEO Ken Murphy said growth had been boosted by strong online sales, which were up 8%, and a 9% jump in revenue from its premium own-label Finest range.
"We are complementing our leading position in grocery home shopping with strong growth in Whoosh, up 37% in the half and on track to deliver sales of over £500m this year. Our recent partnerships with Uber Eats and Deliveroo are further extending our unique rapid delivery reach, and our new F&F website is helping even more customers discover and shop our full range of clothing," he added.
"We are also making strong progress on AI-enabled personalisation, extending Your Clubcard Prices and beginning the customer rollout of our meal planning assistant, helping customers manage their busy lives. Tesco Media grew strongly in the half, attracting new advertisers and offering improved analytics and automation through an enhanced self-service platform."
Reporting by Frank Prenesti for Sharecast.com
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