The supermarket chain reported first-half adjusted operating profit of 1.78 billion pounds, outperforming analyst estimates of 1.72 billion pounds. Pretax profit climbed 11.5% to 1.46 billion pounds, bolstered by a 2% increase in overall sales, excluding fuel and tax, which reached 33.78 billion pounds. With a 27.6% share of the U.K. market, Tesco remains nearly twice the size of its closest competitor, Sainsbury’s.

To reward shareholders, the group is expanding its annual buyback program from 750 million to 950 million pounds. Richard Hunter, Head of Markets at Interactive Investor, noted that the company’s internal savings program has been critical in offsetting cost inflation. These efficiencies remain a strategic priority as the retailer navigates broader economic uncertainty and potential inflationary pressures from global geopolitical tensions.