Over the duration, Tesco’s profits climbed well ahead of analyst forecasts’ of £700m, achieving 23.7% growth to reach £759m; nearly eight times the £71m reported in the same period last year. It was reported this growth was helped by holding back the scale of price increases compared to rivals in the face of inflationary pressure in a challenging market. Also highlighted was the strong performance of Tesco’s fresh food ranges, outperforming the market in this area.
Yet, despite the return of dividends and improving levels of profitability, investors appeared to remain uneasy with shares closing 3.2% down, as conditions within the general grocery market remain challenging, and sales growth slips to 2.1% compared to 2.3% in the previous three months.