This represented a 10.6% year-on-year increase for the retailer, although statutory operating profit declined by 3.9% because of a non-cash net impairment charge on non-current assets. This translated to £1.6 billion in statutory profit after tax for the year.
Meanwhile, group sales (excluding fuel) were valued at £63.6 billion, up 3.5% from £61.5 billion in 2023/24.
Reflecting on the retailer’s performance, chief executive Ken Murphy said that investment in new product development had paid off as Tesco achieved its highest market share in nearly a decade.
“We have invested in bringing great prices to our customers throughout the year, and continued to innovate with over 1,600 new or improved products including 400 new Finest lines, where overall sales grew 15%,” he commented.
“We are also making significant progress on our long-term growth opportunities, further enhancing our digital capabilities with increased personalisation, further improvements to our online experience and an expanded retail media offering.”
Looking ahead, Tesco has projected that group adjusted operating profit will fall to between £2.7 billion and £3 billion in 2025/26.
“Building on our strong financial performance, robust balance sheet and positive momentum, we are setting ourselves up for the year ahead with the flexibility to continue to win in a highly competitive market,” Murphy added.
“Despite inflationary headwinds, we are committed to ensuring customers get the best possible value by shopping at Tesco, and see further opportunities to strengthen our competitiveness.”
Amid the firm posting profits of more than £3 billion, Unite the Union has urged Tesco to deliver pay rises for the drivers and warehouse workers that the trade union represents.
“Unite will be fighting for our members at Tesco who are drivers and warehouse workers to receive a fair pay rise – it is clear the company can more than afford it,” said Unite general secretary Sharon Graham.
She also criticised the supermarket for its strategy of “unfairly inflating grocery prices” at the expense of its customers.
“Profiteering is endemic across our economy, with hard up families and working people paying the price for corporate greed,” Graham added.
“As for companies taking advantage of the ongoing cost of living crisis to grab oversized profits, action from the government to protect working people is long overdue.”
On the topic of pay and staffing, Murphy said: “None of this would be possible without the dedication of our 340,000 colleagues and I want to thank them for all their hard work. We continue to invest in our market-leading package of colleague benefits, including over £900m in pay increases across the last three years.”
