Britain's Tesco raises annual profit outlook after strong H1

The group, which has a near 28-percent share of the UK grocery market, said it now expected retail adjusted operating profit, its preferred profit measure, of "around" 2.9 billion pounds ($3.8 billion) for its 2024-2025 year, up from a previous forecast of "at least" 2.8 billion pounds. It made 2.76 billion pounds in 2023/24.

Tesco, whose shares have risen 22 percent so far this year, is continuing to benefit from its strategy of matching the prices of discounter Aldi on hundreds of key items and the popularity of its Clubcard loyalty scheme, which provides lower prices for members. These programs are being financed by taking costs out of the business.