Tesco PLC

Strong FY delivery vs guidance (good + somewhat surprising): - Group sales +4.3% at constant exchange rates (+3.5% like-for-like). - Adjusted operating profit: £3.15bn (+0.6% constant), driven by sales growth and £535m contribution from “Save to Invest” offsetting cost inflation and investment in the customer offer. - Free cash flow: £1.96bn (+12%), above the top end of guidance. - Management attributes the outperformance mainly to better-than-expected returns on investments in price, quality, range and store “hours”, supporting market-share gains and steady volume growth through the year.

Capital returns: dividends + buyback (investor-friendly): - Final dividend 9.7p, full-year 14.5p (+5.8%), targeting ~50% payout of earnings. - Returned £2.4bn to shareholders via dividends + buybacks during the year. - Announced additional £750m share buyback for FY ahead. - Medium-term view: cash generation remains strong enough to support continued reinvestment and shareholder returns.

Outlook: wider profit range due to Middle East uncertainty (key risk + uncertainty): - Guidance for FY ahead: adjusted operating profit £3.0bn to £3.3bn (range widened vs prior due to conflict-related uncertainty). - Free cash flow expected £1.5bn to £2.0bn (upgraded medium-term FCF guidance; old range £1.4bn–£1.8bn). - Management stance: they are confident in ability to keep executing “Save to Invest” and the customer offer across a downside/upside scenario, but duration/magnitude of household and macro impact is unknown.