With the release of Tesco’s Preliminary Results 2022/23, the retailer has said that it ‘expects to be able to deliver a broadly flat level of retail adjusted operating profit in 2023/24’.
The results showed a 5.3% increase in group sales year-on-year and an increase in adjusted operating profit of around £95 million (6.1%). Meanwhile, profit before tax halved from just over £2 billion to £1 billion.
Ken Murphy, Tesco’s Chief Executive, said: “It’s been an incredibly tough year for many of our customers, and we have been determined to do everything we can to help.
“Our results reflect our continued investment in delivering great value and quality for our customers, whilst at the same time looking after our colleagues.
“This is despite unprecedented levels of inflation in the prices we have paid our suppliers for their products, and the cost of running our own operations.”
The company stated that it will continue to do everything it can to offset the impact of ongoing elevated cost inflation. In addition to predicting ‘broadly flat’ profits for the coming year, Tesco expects that it will meet its target of achieving retail free cash flow within the range of £1.4 billion to £1.8 billion.
