Business

Tesco profits rise as online sales soar during Covid pandemic

Tesco reported a £2 billion profit.

Tesco on Wednesday beat its guidance by reporting total adjusted retail operating profit of £1.99 billion (€2.3 billion) after seeing “exceptionally strong” sales during the Covid-19 pandemic.

The retailer reported a 6.3 per cent rise in group like-for-like sales, including a 7.7 per cent lift in its core British market. UK online surged 77 per cent to £6.3 billion as it doubled capacity to 1.5 million slots a week.

Operating profit, however, fell 14.7 per cent as the company incurred costs in adapting to the pandemic.

Chief Executive Ken Murphy said Tesco had shown incredible strength and agility.

“While the pandemic is not yet over, we’re well-placed to build on the momentum in our business,” he said.

It said that while some of the additional sales volumes would fall away as Covid-19 restrictions ease, it expected a strong recovery in profitability and retail free cash flow as the majority of the costs incurred in the pandemic would not be repeated.

Tesco has 151 stores in the Republic and employs over 13,000 people.

Source:

www.breakingnews.ie

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