Tesco PLC on Wednesday raised its full-year profit forecast, citing a better-than-expected customer response to its price investments and continued market share gains in the U.K.
The British supermarket group now expects adjusted operating profit for the fiscal year to be between 2.9 billion and 3.1 billion British Pounds, up from a previous range of 2.7 billion to 3.0 billion British Pounds, the company said.
The upgraded outlook came as the company reported a 1.5% rise in first-half adjusted operating profit to 1.67 billion British Pounds, on group sales, excluding fuel, that grew 5.1% to 33.05 billion British Pounds.
Tesco said its market share in the U.K. grew by 77 basis points over the year to 28.4%, marking 28 consecutive four-week periods of gains.
"I am pleased with our first half performance, which builds on already strong momentum," Chief Executive Ken Murphy said in a statement.
"Our market share gains in the UK are a particular highlight and reflect the decisive action we took at the start of the year to further invest in value, quality and service."
The company also announced an interim dividend of 4.80 pence per share, an increase of 12.9% from the prior year.