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Tesco has lifted its annual profit forecast after a strong performance over the Christmas period.
The UK’s largest supermarket chain said on Thursday that adjusted operating profits for the year from its retail business would come in at about £2.75bn. The company had previously expected a range of £2.6bn to £2.7bn.
Tesco said like for like sales in the UK rose by 9.2 per cent in the four weeks to Christmas, and pointed to particularly strong sales of fresh food and of its premium Finest range.
“Our continued investments across the full breadth of our customer offer have resulted in a stronger trading performance than anticipated,” Tesco said in a statement.
Profits from Tesco Bank will be in line with previous guidance of £130-160mn.
The upgrade from Tesco comes a day after rival J Sainsbury disappointed investors with weak sales of general merchandise.
