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Tesco 1Q Comparable Revenue Rose, But UK Sales Fell — Update

By Sabela Ojea

 

Tesco PLC said Friday that like-for-like sales rose in the first quarter of fiscal 2023, although U.K. revenue had a hit on an on-year basis, and noted that its full-year guidance for its profit and cash performance remains unchanged.

The British grocer said like-for-like sales excluding value-added tax and fuel for the three months ended May 28 increased by 2% to 13.57 billion pounds ($16.76 billion). Sales in the U.K. fell by 1.5% to GBP9.88 billion in the period, it said.

Tesco said it gained 37 basis points in market share growth in the U.K. despite the lower sales. The company said its performance was affected by the annualization of last year's pandemic-related lockdown, which was partially offset by inflation.

Regarding its performance in Ireland, Tesco said that sales fell by 2.4%. It noted that sales in Central Europe rose by 9%.

"Our material and ongoing investment in the combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices is removing the need for customers to shop elsewhere...Customers are facing unprecedented increases in the cost of living and it is therefore even more important that we work with our supplier partners to mitigate as much inflation as possible," Chief Executive Ken Murphy said.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

June 17, 2022 02:56 ET (06:56 GMT)

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