Tesco (LON:TSCO) reported a 28.7% rise in profits, with stocks rising 2.92% in opening Wednesday.
In the 26 weeks ending August 29, pre-tax profits rose to £551 million thanks to a surge in online sales during the pandemic.
Total sales at the UK’s largest supermarket increased by 6.6% to £26.7 billion, while similar sales increased by 7.2%.
With the start of the lockdown, the average basket size has increased by more than 50% due to panic purchases and shifts in people working from home.
Over the course of the pandemic, Tesco has significantly increased the number of home delivery to reach vulnerable people in closures. The group doubled their weekly delivery slots to over 1.5 million people.
However, operating profit fell 15.6% to £137 million. Tesco Bank suffered a loss of £155 million, with COVID-related costs reaching £533 million.
This is the first result of the supermarket as the group’s new CEO, Ken Murphy, started last week and replaced Dei Brews.
The group pays a dividend of 3.2p per share.
In its latest results, Murphy’s CEO said: “Early the first half of this year we tested our business in ways we never imagined. Our colleagues acted in the best interests of our customers and our community and rose spectacularly to every challenge. I would like to thank all of our colleagues for the incredible contributions. I am delighted and proud to be part of such an incredible team.
“Tesco is a great business with many strategic advantages. We are excited about the range of opportunities to use these benefits to create more value for our customers and in doing so, we can create value for all other stakeholders,” he added.
Tesco has also announced Imran Nawaz, the new Chief Financial Officer who previously worked at Tate & Lyle.
Tesco Shares (LON:TSCO) is currently trading +2.48% at 219,30 (0839GMT).
