Britain’s Tesco sticks to guidance after inflation boosts quarterly sales

LONDON (Reuters) – Tesco (OTC:), Britain’s biggest retailer, maintained its guidance for the year as it reported a 9% rise in underlying UK sales in its latest quarter, driven by inflation.

The group, which has an over 27% share of Britain’s grocery market, said on Friday it still expects to deliver broadly flat retail adjusted operating profit, its key profit measure, in the 2023/24 year.

It made 2.49 billion pounds ($3.18 billion) in 2022/23.

British consumers have been pressured for more than a year by stubbornly high inflation which has outstripped pay growth, but Tesco chief executive Ken Murphy said on Friday that some relief from rising grocery bills could be on the way.

“There are encouraging early signs that inflation is starting to ease across the market,” he said in a statement.