UK supermarket chain Tesco lifted full year earnings guidance after strong first-half sales helped interim profits to more than double against a backdrop of labour shortages and cost pressures.
Group sales including fuel grew 5.9% to £30.4bn in the 26 weeks to August 28 as pre-tax profit increased 107% to £1.1bn and adjusted operating profit rose by 40% to £1.45bn. Core retail sales were up 16.3% to £1.38bn.
Tesco said it expected adjusted retail operating profit to be between £2.5bn and £2.6bn. It added that it was starting an ongoing share buyback with the first tranche of £500m to be bought within a year.
The interim dividend was held at 3.2p a share.
