In the first half of 2016 Tesco Group reported an increase in operating profits of 38.4%, which equates to £515m (€584m), compared to the same period last year.
Figures from the company’s interim results for the last six minths also show that Tesco’s operating profit pre-exceptionals increased by just over 60.2% or £596m (€676m), while group sales for the supermarket grew by 3.3%.
Meanwhile, retail operating cash flow for Tesco jumped to £955m (€1.8 billion), up 20.7%, in the first six months of the year, compared to 2015, the company’s interim results for the last six months show.
The supermarket’s net debt also fell by 49.3% year-on-year, while it is down 14.8% versus year-end, figures show.
Long term vision
The supermarket’s long term vision includes fostering long-term sustainable partnerships with suppliers that will support Tesco to innovate and add value to their customer offer.
These suppliers will ideally also help Tesco to identify initiatives to leverage their scale and reduce costs.
For example, Tesco has been able to work with their fresh fruit and vegetable growers to ensure that the supermarket can change their trading strategy at a market-leading pace following unexpected crop surpluses.
Continues to make progress in 2016
Tesco has continued to make progress in 2016, with positive like-for-like sales growth across all parts of the Group as well as rebuilding profitability in a sustainable way, according to Chief Executive, Dave Lewis.
“The entire Tesco team is focused on serving shoppers a little better every day. We are more competitive across our offers,” he said.
Prices are more than 6% lower than two years ago, while availability or service has never been better and our range is more compelling, the Chief Executive also said.
Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere.
“Whilst the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilising the business and positioning us well for the future.
“Today, we are sharing the plans we have in place to become even more competitive for our customers, even simpler for colleagues and an even better partner for our suppliers, whilst creating long-term, sustainable value for our shareholders,” he said.