Shares in Tesco (LON:TSCO) have advanced in today’s session as Britain’s biggest grocer updated investors on its first-quarter performance, posting a rise in like-for-like sales. The company further noted that its programme to integrate wholesale Booker, whose acquisition completed earlier this year, was well underway.
As of 08:14 BST, Tesco’s share price had added 2.24 percent to 255.40p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.12 percent lower at 7,756.26 points.
Tesco updates on Q1 performance
Tesco announced in a statement today that its like-for-like sales growth had improved to 1.8 percent in the 13 weeks ended May 26. The blue-chip grocer benefitted from strong performance in the UK and Ireland, with LFL sales growth improving to 3.5 percent during the reported period. Britain’s biggest supermarket further noted that its ‘Joining Forces’ programme of integrating Booker was ‘well underway,’ with 3,000 products of the wholesaler now fulfilled from Tesco Magor distribution centre.
“We are delighted with initial progress on Booker, and are focused on delivering the synergy benefits that our merger brings,” Tesco’s chief executive Dave Lewis commented in the statement. The results mark a boost for Britain’s biggest grocer, which continues to battle competition from German discounters Aldi and Lidl, while its FTSE 100 rival Sainsbury’s (LON:SBRY) is looking to merge with Walmart’s Asda.
Analysts weigh in on update
Neil Wilson, chief markets analyst at Markets.com, told the BBC that Tesco’s performance was better than expected, noting that it was “a healthy performance given the pressures it faces in terms of discounters”.
“It does represent a slight softening from the last two quarters but it would be churlish to punish such a performance,” he pointed out.