**Summary of Tesco PLCs Interim Results 2025/26:**
Tesco PLCs interim results for the first half of 2025/26 (H1 25/26) highlight strong performance driven by continued investment in value, quality, and service, leading to significant market share gains. Key financial highlights include
**Group Sales (excl. VAT, excl. fuel)** Increased by 5.1% to £33,051 million, with growth across all segments: UK (+4.9%), ROI (+4.8%), Booker (+1.7%), and Central Europe (+3.4%).
**Adjusted Operating Profit** Rose by 1.6% to £1,674 million, with UK & ROI up 2.1%, Booker up 0.6%, and Central Europe down 11.2% due to competitive pressures.
**Free Cash Flow** Increased by 2.9% to £1,298 million, supported by strong sales and capital discipline.
**Adjusted Diluted EPS** Grew by 6.8% to 15.43p, driven by higher operating profit and share buybacks.
**Dividend per Share** Increased by 12.9% to 4.80p.
OperationallyTesco achieved
**UK Market Share** Gained 77 basis points to 28.4%, with 28 consecutive periods of share gains.
**Customer Satisfaction** Improved across all metrics, outperforming competitors.
**Online Sales** UK online sales grew by 11.4%, with Tesco Whoosh rapid delivery service sales up 59%.
**Range Innovation** Launched over 470 new products and improved 560 existing ones, with Finest range sales up 16%.
**Distribution Expansion** Opened a new semi-automated distribution center in Aylesford and planned another in DP World London Gateway.
StrategicallyTesco focused on
1. **Magnetic Value for Customers** Enhanced value through price matches, Clubcard deals, and product innovations.
2. **Clubcard Engagement** Increased personalized offers and digital engagement, with over 13 million customers receiving tailored recommendations.
3. **Convenience Expansion** Opened 38 new stores and expanded online capacity, including Tesco Whoosh.
4. **Cost Efficiency** On track to deliver £500 million in savings through the "Save to Invest" program.
Looking ahead, Tesco expects FY 25/26 adjusted operating profit between £2.9 billion and £3.1 billion, up from previous guidance, and maintains its free cash flow guidance of £1.4 billion to £1.8 billion. The company remains committed to sustainable growth, customer-centric strategies, and stakeholder value creation.
**Key Takeaways**
Strong financial and operational performance despite competitive intensity.
Continued focus on value, quality, and innovation to drive customer loyalty.
Strategic investments in technology, distribution, and digital capabilities to support long-term growth.
Positive outlook with upgraded profit guidance and sustained cash flow discipline.