Tesco PLC (LSE:TSCO) half-year update is expected to show the group’s growing dominance of the UK grocery business reflected in its numbers.
UBS sees the UK’s number one supermarket posting underlying profits of £1.54 billion, up 6%, while on the revenue front good volume growth will be offset by the recent drop in food prices.
For the full year, the Swiss bank expects retail profits of £2.92 billion.
“Given Tesco’s guidance of at least £2.8bn Retail EBIT, the likely strong performance in the first half gives it the opportunity to potentially raise the guidance though given the conservative nature of the management team they may leave it unchanged for now.”