Tesco's (LSE:TSCO) comparable-year results show broad-based sales growth and cash strength as customers responded to heavier investment in price, quality and service. Group like‑for‑like sales rose 3.5%, with the UK up 4.2%, ROI 4.6%, Booker 0.2% and Central Europe 2.2%. UK market share reached 28.5%, up 24 basis points year‑on‑year.
Adjusted operating profit finished at £3,152m; statutory operating profit on the 53‑week basis was £2,985m, up 10.1% and including a £(53)m impairment charge versus £(286)m last year. Adjusted diluted EPS was 29.0p, helped by the ongoing buyback programme. Net debt at the balance sheet date was £(10,563)m, with a net debt/EBITDA ratio of 2.1x. Free cash flow improved to £1,957m.
Operational highlights included Finest sales up 15% to £3bn, online grocery over £7bn (up 11%), and Tesco Whoosh growing 51% to over £400m. Save to Invest has delivered c.£2.2bn over four years and hit c.£535m ahead of target this year, funding price investments and a £65m special performance award for colleagues.
"Customers are choosing to shop more with us as a result, leading to our highest market share for over a decade," said CEO Ken Murphy.
The board reiterated its capital allocation framework — reinvestment, maintaining an investment‑grade balance sheet, a progressive dividend (payout c.50%) and returning surplus cash — and set a new Save to Invest target of £500m for FY26/27.
