Tesco profits have doubled in the first half of the years despite supply chain issues.
The store’s profits jumped 107% to £1.1bn as coronavirus related costs fell and sales were up by 3% in the six months to 28 August.
Tesco is expected to reach full-year profits of £2.6bn, which is £700m more than expected and have been boosted by the Euros and more staycations in the UK this summer.
“We’ve had a strong six months; sales and profit have grown ahead of expectations, and we’ve outperformed the market against a backdrop of profound change. Tesco has many unique advantages. The scale and reach of our store estate and online operations are unmatched in the UK,” said the chief executive, Ken Murphy.
Commenting on the results, Walid Koudmani, market analyst at financial brokerage XTB, said: “Tesco announced a share buyback programme after strong H1 performance and increased profit outlook. In addition, the retail giant set out its strategic priorities moving forward as it intends to keep growing its customer base with several competitive offerings and by strengthening its digital platform.”
“Today’s results reassure investors by showing positive performance and a clear plan for the future as the economy contends with potential supply shortages.”
Tesco shares rose 3% on the results this morning.