Tesco reports first quarterly sales growth for three years

[LONDON] Tesco, Britain's biggest retailer, on Wednesday reported its first quarter of underlying UK sales growth for over three years, showing its recovery is gaining momentum.

The firm said UK sales at stores open over a year rose 0.9 per cent in the 13 weeks to Feb 27, its fiscal fourth quarter, building on growth over its six week Christmas trading period.

Tesco also reported a full year operating profit before one-off items of 944 million pounds (S$1.75 billion), just ahead of analysts expectations of 932 million pounds and the 940 million pounds it made in 2014-15.

It said continued investment in prices to stay competitive in a "challenging, deflationary and uncertain market" would slow the pace of profit improvement, particularly in the first half of its current year.

REUTERS