Tesco PLC Q2 2027 Earnings Recap

Tesco’s shares rose 5.9% after the results, as investors responded to first-half profit growth of 6.3% and double-digit EPS growth despite group sales growth of 1.6%. The update also showed mixed trading: U.K. online and Finest grew, while convenience like-for-like sales declined.

Key Takeaways

• Group sales increased 1.6% at constant rates; profit rose 6.3% and EPS 12.2%.
• Free cash flow was £1.57bn, including a roughly £250m net benefit, primarily from payroll timing; net debt ratio was 2x.
• U.K. sales grew 2.1% and like-for-like sales 1.5%; food like-for-like sales rose 2.4%, with Finest up 9%.
• U.K. online like-for-like sales increased 8.4%; Whoosh sales rose 37%. Convenience like-for-like sales fell 1.7%, largely reflecting tobacco-market decline.
• U.K. market share reached 27.8%, up 23 basis points on a two-year basis; management attributed the anticipated period change partly to an exceptional prior-year comparison.