UK's Tesco defies supply chain challenges to lift profit forecast

First-half core retail profit up 16.6% ; launches 500 mn pound share buyback

Tesco, Britain's biggest retailer, raised its full-year earnings forecast on Wednesday after the unmatched scale of its store and online operations helped it outperform rivals in the first half and deliver a better-than-expected 16.6% increase in profit.

British retailers are battling supply chain disruptions and labour shortages. Supermarkets also face tough comparisons against record sales during COVID-19 lockdowns.

Tesco however, increased sales in the period.

"We've had a strong six months; sales and profit have grown ahead of expectations, and we've outperformed the market," said Chief Executive Ken Murphy.

"With various different challenges currently affecting the industry, the resilience of our supply chain and