Tesco Ireland saw like-for-like sales growth of 5.5% during the first quarter of its financial year, outpacing growth in the wider Tesco group (+4.6%).
Tesco's Irish branches made sales of £772m (€905m) for the quarter, which ended in late May, contributing to UK & ROI sales of £15.4bn and group sales of £16.4bn.
In a trading statement, the group highlighted that its market share has continued to increase in Ireland, rising 22 basis points to 23.3% in the latest Kantar reckoning, and that it has delivered share gains for the past 40 months.
Foods sales in Ireland rose 5.8% as the group invested in its Irish fresh food proposition, and online sales rose 19.8% with the launch of same-day click & collect and home delivery last year.
"Our award-winning own label products continue to gain in popularity, while our partnerships with local Irish suppliers ensure customers have access to the very best products on the market," said Geoff Byrne, CEO of Tesco Ireland.
"Our commitment to deliver genuine value through Clubcard Prices and Aldi Price Match is assuring customers that they need go no further in unlocking affordability," he said.
"Online shopping remains a strong growth area for Tesco Ireland, while the launch of our innovative on-demand rapid delivery service Whoosh has been very well received in Dublin since its launch in March, with average delivery values similar to those of in-store basket shops."
For the full year, Tesco has reaffirmed its adjusted operating profit guidance of £2.7bn to £3bn, which would represent a decline for more than £3.1bn in 2024/25, which the group said was down to the "competitive intensity" of the UK grocery market following price cuts by Asda.
Fresh cash flow is expected to fall within the group's medium-term guidance range of £1.4bn to £1.8bn.
The group has completed £448m of an announced £1.45bn in share buybacks since the programme was announced in April and said the remaining shared will be repurchased by April 2025.
Shares in Tesco plc have risen 2.8% in London trade today and have increased by 27% over the past year on foot of the success of Tesco's strategy of price matching with Aldi and its heavy promotion of the Clubcard loyalty scheme.
“We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the Group," said Ken Murphy, CEO of Tesco.
"The market remains intensely competitive, and we are committed to ensuring customers get the best value in the market by shopping at Tesco."
(Pic: Getty Images)
