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TESCO Interim Results 2021/22 Headline measures¹ , 2 : Group sales ( exc . VAT , exc . fuel ) ³ Adjusted operating profit4 Adjusted diluted EPS6 Interim dividend per share Retail Tesco Bank Retail free cash flow5 Net debt2,5 Statutory measures : Revenue ( exc . VAT , inc . fuel ) Operating profit Profit before tax Diluted EPS ● ● STRONG H1 OUTPERFORMANCE LEADING TO INCREASED FY PROFIT OUTLOOK . STRATEGIC PRIORITIES SET OUT ; SHARE BUYBACK PROGRAMME ANNOUNCED . ● ● ● ● ● 1 - yr LFL sales 2 - yr LFL sales UK 1.2 % 8.9 % H1 21/22 ● £ 27,331m £ 1,458m £ 1,386m £ 72m £ 1,543m £ ( 10.2 ) bn A strong first half leading to an upgrade in full year profit expectations : Elevated sales continued into first half ; Group Retail 1 - yr LFL ' sales growth includes UK market outperformance and sharp recovery of Booker catering ; 2 - yr LFL reflects strong performance throughout pandemic across all businesses : Booker UK & ROI C.Europe 11.0 % 2.4 % 1.4 % 9.1 % 9.1 % 0.3 % 11.22p 3.20p £ 30.4bn £ 1,304m £ 1,143m 10.70p H1 20/21 ROI ( 2.6 ) % 12.2 % £ 26,652m £ 1,037m £ 1,192m £ ( 155 ) m £ 797m £ ( 12.5 ) bn 7.29p 3.20p Total adjusted retail operating profit4 £ 1,386m , + 16.6 % at constant rates UK & ROI adjusted operating profit £ 1,318m , + 16.5 % due to higher sales and lower COVID - 19 costs , part offset by YoY effect of last year's £ 249m business rates relief ( repaid in H2 last year ) Central Europe adjusted operating profit £ 68m , + 18.6 % due to lower COVID - 19 costs & higher YoY mall income Bank adjusted operating profit £ 72m , returning to profit following last year's increase in potential bad debt provision Retail free cash flow5 £ 1,543m , + 93.6 % inc . higher profit , lower pension contribution & c . £ 400m working capital phasing Net debt2,5 reduced by + £ 1.7bn since February reflecting strong cash flow • Adjusted diluted EPS 11.22p , + 54.0 % reflecting higher retail profits and return to profitability for Tesco Bank Detail on footnotes can be found on page 5 . £ 28.7bn £ 1,007m £ 551m 4.06p Change at actual rate 2.6 % 40.6 % 6.3 % 146.5 % 93.6 % down 18.5 % 54.0 % Strengthening our customer proposition : Grown UK market share ; Customer satisfaction improving across all areas 5.9 % 29.5 % 107.4 % 163.5 % Change at constant rate 3.0 % 41.0 % 6.6 % 146.5 % Retail 2.3 % 8.4 % Interim dividend of 3.20p , in line with prior year ; aligned to policy at 35 % of last year's full year dividend Strong first half performance leading to increased full year profit expectations : adjusted retail operating profit now expected to be between £ 2.5bn and £ 2.6bn • Strengthened digital platform : online LFL sales + 2.3 % ( 2 - yr LFL : + 74.1 % ) with market share maintained ; now over 20m Clubcard households including 6.6m app users ; on - demand grocery delivery trials progressing well ' Aldi Price Match ' expanded to c.650 products , Clubcard Prices now in Express stores and unbeatable Low Everyday Prices relaunched on 1,600 products Group net zero own operations climate goal accelerated to 2035 ; new 2050 scope 3 target announced ; soft plastic recycling now in all UK large stores ; ambitious health commitments launched across UK , Central Europe & Booker Creating long - term , sustainable value for all Tesco stakeholders : ● Strategic priorities and multi - year performance framework set out Aim to drive top and bottom line growth and generate between £ 1.4bn and £ 1.8bn retail free cash flow per year • Capital allocation framework refreshed £ 500m share buyback announced Serving our customers , communities and planet a little better every day .