Tesco Reports Growth in Quarterly Sales

By Tapan Panchal Features Dow Jones Newswires

Tesco PLC (TSCO.LN) Friday reported positive like-for-like sales growth for a sixth consecutive quarter and said it is working with suppliers to offset impact of inflation.

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The supermarket chain, which earlier this year agreed to buy food wholesaler Booker Group PLC (BOK.LN) in a 3.7 billion pounds ($4.72 billion) cash and stock deal, said group like-for-like sales for the 13 weeks to May 27 grew by 1.0%, compared with 0.9% growth achieved in the year ago period. Total group sales, excluding fuel and value added tax, grew 3.6% versus 1.8% growth a year ago.

Same store sales for the retailer's core U.K. unit grew by 2.3%, versus 0.3% growth achieved a year ago. The rise in U.K. sales was mainly driven by 2.7% like-for-like sales growth in the company's food division.

"This is a good start to the year, with our sixth consecutive quarter of positive like-for-like sales growth across the group. We are confident in our plans to create long-term, sustainable value for our key stakeholders and to deliver on the ambitions we have set out," said Chief Executive Dave Lewis.

Write to Tapan Panchal at tapan.panchal@wsj.com

(END) Dow Jones Newswires

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June 16, 2017 02:40 ET (06:40 GMT)