esco revealed that annual profits have more than tripled, but warned that retail profits will be under pressure this year due to soaring inflation and shoppers returning to their buying habits. before the pandemic.
The supermarket giant saw the group’s pre-tax profits climb to £2.03bn in the year to February 26, from £636m the previous year, thanks to higher sales and lower pandemic-related costs.
It posted a 58% rise in underlying operating profit to £2.8bn, with retail profits up 34.9% to £2.6bn.
The group said non-fuel sales rose 2.5% to £54.8bn, with like-for-like growth in the UK of 0.4% – up 8.2% on a comparison of two years before the pandemic.
Profits were helped as Covid-19 costs fell to £220m from £892m the year before.
But he warned that retail operating profits are set to fall this year, to between £2.4bn and £2.6bn, as the group’s own costs are set to soar and it invests in prices to remain competitive in a context of soaring food inflation.
It is also said that customer behavior is also returning to more normal patterns as shoppers rely less on trips to supermarkets as the UK emerges from the pandemic.
Tesco chief executive Ken Murphy said: “Clearly the external environment has become more challenging in recent months.
“In a difficult environment for our customers and with household budgets under pressure, we are focused on controlling the cost of the weekly shop – working in close partnership with our suppliers, while doing everything we can to reduce our own expense.”