Tesco has kept its full-year profit outlook as it reported a rise in underlying sales for the key Christmas trading period, in line with analysts' expectations, winning market share from rivals.
Tesco said its UK Christmas sales rose by 4.1%, while its sales in Ireland increased by 4.8% over the Christmas period and by 4.2% during its fiscal third quarter.
The supermarket group said that its fresh food performance in Ireland drove its strong volume growth with continued share gains to mark 34 consecutive periods of gains.
It reported fresh volume growth of 2.1%, supported by the ongoing rollout of "fresh first" programme, while its Irish online sales up jumped by 17.1%, on the back of the launch of same-day Click & Collect and home delivery services.
Tesco Ireland's CEO Natasha Adams said the strong performance reported today reflects the company's "unrelenting" commitment to provide an excellent shopping experience for customers.
"The significant investment we've made in expanding our store footprint nationally - four new stores in the third quarter - in multi-year contract extensions with key Irish suppliers, and in pay increases and benefit enhancements for our colleagues highlight our continued commitment to building a thriving Irish economy," she added.
Tesco, which has a UK grocery market share of 28.5%, said it still expected retail adjusted operating profit, its preferred profit measure, of "around £2.9 billion for its year to February 2025, up from the £2.76 billion made in 2023/24.
Under chief executive Ken Murphy Tesco is reaping the rewards of a programme to improve the value and quality of its products, step-up innovation and enhance its customer service.
"We delivered our biggest ever Christmas, with continued market share growth and switching gains," CEO Ken Murphy said.
He also said that Tesco will face additional costs of about £250m a year from the UK government's hike in social security payments from April.
