Tesco raises profit forecast as cost pressures ease

Tesco (TSCO) raised its full-year forecasts on the back of surging profits and market share gains, as easing input cost pressures helped it cut prices and attract customers "at both ends of the basket" according to chief executive Ken Murphy. 

Britain’s biggest supermarket now forecasts a retail adjusted operating profit of £2.6bn-£2.7bn for the year, up from previous guidance of £2.5bn. Retail free cash flow expectations also received a bump, with this now forecast to come in at £1.8bn-£2bn against medium-term guidance of £1.4bn-£1.8bn.