Tesco reported a positive half-year performance, with a 6.3 percent increase in adjusted operating profits to £1.8 billion and half-year sales reaching £33.8 billion, excluding fuel and VAT. The company raised the lower end of its full-year profit forecast to £3.15 billion, expecting annual profits to fall between £3.15 billion and £3.3 billion.

Ken Murphy, Tesco’s chief executive, addressed recent market speculation during the company’s financial update. When questioned about the possibility of a merger between rivals Sainsbury’s and Morrisons, Murphy dismissed the idea, saying he did not “overthink possible permutations and combinations.” He also refrained from commenting on rumors that Tesco might submit a bid for Majestic Wine.

Online sales continued to drive growth, with UK internet sales increasing by 8.4 percent. Tesco’s rapid delivery service, WHOOSH, saw sales surge by 37 percent. Overall, like-for-like sales across the group rose 1 percent, with a 1.5 percent increase in the UK market. Despite ongoing pressures on consumer budgets due to economic uncertainty and political instability, shoppers have maintained demand for premium products, with the company’s Finest range seeing a 9 percent rise in sales.

Fuel sales also contributed to Tesco’s revenue growth, rising nearly 20 percent, largely reflecting higher oil prices. Murphy emphasized the company’s focus on providing value to customers, stating that Tesco remains committed to helping shoppers stretch their budgets. He added that the retailer is preparing to introduce new festive product ranges in anticipation of the holiday season.

While cautioning that economic and political challenges continue to impact consumer confidence, Tesco’s leadership expressed optimism about the company’s ability to navigate the volatile market and meet customer needs in the months ahead.