In H1 FY23/24, Tesco’s sales and operating profit were ahead of the market expectations – largely attributable to the UK & ROI segment. The company is well-placed to preserve its market share gains and profitability. The weakness in CE is non-structural. The improvement in the annual outlook (for retail operating profit and FCF) is reassuring. We continue to see Tesco as one of the healthiest of the lot. We will increase our financial estimates slightly. Positive recommendation maintained.
