Tesco raises profit outlook as sales jump in Ireland and UK

Tesco has unveiled a jump in sales for the first half of the year amid an online shopping boost and raised its annual profit outlook.

Tesco has unveiled a jump in sales for the first half of the year amid an online shopping boost and raised its annual profit outlook, despite cautioning that economic uncertainty was weighing on consumer confidence.

The supermarket chain said sales, excluding fuel and VAT, totalled £33.8bn (€39.84bn) for the 26 weeks to August 29.  Tesco has more than 13,000 employees in its 190 Irish stores, and this week confirmed a new Tesco Express for Ballincollig will open next month.

Sales were 1% higher when compared like-for-like with the same period last year. The company has a 24.1% share of the Irish grocery market, "reflecting strong like-for-like sales growth and new space openings", the company said in its financial statement on Thursday.

In the UK, online sales surged 8.4% with sales for its rapid delivery arm Whoosh soaring by 37%. Whoosh has also been rolled out across Ireland.

The company revealed its adjusted operating profit jumped by 6.3% to £1.8bn (€2.12bn). Tesco said a strong financial performance for the first half meant it was now expecting profits of between £3.15bn and £3.3bn for the full year – an improvement on the £3bn to £3.3bn range it had previously guided.

Corkman Ken Murphy, Tesco’s chief executive, said: "Against an uncertain external backdrop, we have continued to invest in giving customers the very best value for money. Alongside maintaining our strong value proposition, we have continued to innovate across all our ranges, launching over 800 new and improved products during the half. This included broadening ranges that make healthy, affordable eating even more accessible, such as our fibre-enriched bakery range. Finest continues to outperform, with sales up 9%.

"Our digital channels are important growth drivers for Tesco, with online sales growing 8% in the half. We are complementing our leading position in grocery home shopping with strong growth in Whoosh, up 37% in the half and on track to deliver sales of over £500m this year."

The Tesco Ballincollig in Ballincollig will sit in a unit at the suburb's Eastside Centre previously occupied by EuroGiant, which closed earlier this year. Tesco confirmed the opening to the Irish Examiner, saying the outlet will open at the end of November and employ 15 people. "As our third Express store opening this year, it will bring the total number of Tesco Express stores across Ireland to 62," a spokesperson said.

It opened another outlet on Cork's South Main Street in 2024, but the company said it is seeking other locations suitable to open further stores.

"We have ambitious plans to continue growing our convenience store network and are actively looking for suitable sites nationwide.

"We are particularly interested in units of 3,000 sq ft and above, located on busy roads, high streets, or within established retail locations. Both leasehold and freehold opportunities will be considered," the company said.

In August, Andrew Yaxley as CEO of Tesco Ireland and Northern Ireland, succeeding Geoff Byrne in the role.