29th September 2025

Tesco Preliminary Results 2024/25

Strong Performance Positions Tesco to Continue Winning with Customers

Tesco has delivered a robust set of results for the 2024/25 financial year, with strategic investments in value, innovation, and digital capabilities driving improved performance across key markets. The group’s continuing operations show steady growth in revenue and operating profit, while market share and brand perception have reached decade highs.

Financial Highlights (Continuing Operations)

  • Group Sales (ex. VAT, ex. fuel): £63.64bn (+4.0% at constant rates)

  • Adjusted Operating Profit: £3.13bn (+10.9% at constant rates)

    • Retail Operating Profit: £2.97bn (+8.1%)

  • Free Cash Flow: £1.75bn (↓15.2%)

  • Adjusted Diluted EPS: 27.38p (+17.0%)

  • Dividend Per Share: 13.70p (+13.2%)

  • Net Debt: Reduced by 2.4% to £9.45bn

Statutory Measures

  • Revenue (incl. fuel): £69.92bn (+2.5%)

  • Operating Profit: £2.71bn (↓3.9%)

  • Profit Before Tax: £2.22bn (↓3.2%)

  • Profit for the Year (incl. discontinued operations): £1.63bn (+36.7%)

  • EPS (incl. discontinued operations): 23.51p (+42.0%)

Key Strategic and Operational Achievements

  • Customer Loyalty & Value:

    • Clubcard sales penetration: 84% in the UK, up across all markets

    • Over 8,000 Clubcard Prices offers per week, saving customers up to £392/year

    • Tesco remains the cheapest full-line grocer for 2024/25

  • Product Innovation:

    • Launched over 1,000 new products, improved 600+

    • Tesco Finest range saw sales rise by 15% YoY to £2.5bn

    • Introduced new ranges such as Taste Discoveries and Gut Sense

  • Digital Expansion:

    • Tesco app users grew to 18 million (+12%)

    • Clubcard Challenges and personalised pricing enhanced loyalty

    • Tesco Marketplace now offers over 400,000 third-party products

    • Expanded Whoosh rapid delivery to 1,500+ stores

    • F&F Clothing Online launch set for the year ahead

  • Sustainability:

    • 65% reduction in Scope 1 and 2 emissions since 2015/16

    • Major power purchase agreement signed with Cleve Hill Solar Park

    • Community investment includes £13m through Stronger Starts and a Fruit & Veg for Schools campaign

  • Workforce Investment:

    • Colleague pay to rise 5.2%, hourly rate reaching £12.64 by August 2025

    • Over £900m invested in pay over the past three years

Outlook for 2025/26

While Tesco acknowledges increased competitive pressures in the UK market, the group remains confident in its ability to adapt. Guidance for next year reflects strategic flexibility:

  • Adjusted Operating Profit: £2.7bn–£3.0bn

  • Free Cash Flow: £1.4bn–£1.8bn

  • Share Buyback Plan: £1.45bn (including £700m from banking operation divestiture)

FY 2025/26 will be a 53-week year, though key financial metrics will be reported on a 52-week basis for comparability.

Strategic Priorities Going Forward

  1. Magnetic Value – Maintaining Tesco as the customer’s favourite through competitive pricing and innovation.

  2. Rewarding Loyalty – Continued expansion of Clubcard integration and personalised offerings.

  3. Sustainable Leadership – Focus on ESG goals, community programmes, and long-term green energy investment.

  4. Digital-First Growth – Building a scalable and flexible omnichannel infrastructure.

Conclusion

Tesco’s 2024/25 results reflect a company that has evolved with the times—leveraging digital innovation, customer-centric strategies, and sustainability leadership. CEO Ken Murphy’s vision of “winning with customers” is more than a slogan—it is backed by meaningful investments, consistent growth, and strategic adaptability. Despite a tougher competitive landscape ahead, Tesco’s operational strength and long-term strategy keep it firmly ahead in the UK grocery race.