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07.10.2020

Tesco profit and sales surge amid the pandemic

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Food sales shot up 9.2% although clothes fell 17%

Stocks impacted: Tesco (TSCO)

Tesco reported a 6.4% surge in UK supermarket profits in the first half of the year as shoppers flocked to buy groceries online during the Covid-19 pandemic. Food sales shot up 9.2% although clothes fell 17%. Before the pandemic, around 9% of its sales were online but that has almost doubled in little over six months. Pre-tax profit for the 26 weeks to 29 August was £551m, 28.7% up on 2019 while overall group revenue rose just 0.7% to £28.7bn. As for operating costs, the company has spent £533m over the last six months, with operating profits falling 4.5% to £1bn. Still, costs were offset by higher sales and a temporary tax relief worth £249m. After the report, Tesco stocks jumped 2.25% on Wednesday.

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