Tesco warns profits could fall amid Iran war uncertainty
Tesco has warned that profits could fall back in the year ahead, citing increased uncertainty caused by the conflict in the Middle East.Ken Murphy, its chief executive, said that despite concerns about the impact of the closure of the strait of Hormuz on oil, gas and linked chemicals, the UK’s largest supermarket chain was “in good shape” on stocks of fuel for its petrol stations and distribution network.He said Tesco was not currently seeing problems with the supply of food or groceries, or “meaningful” inflation except at the pump on its forecourts.Murphy said he did not recognise predictions from the UK’s Food and Drink Federation that food inflation could hit 9% amid fears of shortages.“None of our growers, suppliers or manufacturers have flagged any supply issues,” he said.
But he admitted: “Ultimately it is an unpredictable situation.The scenario seems to change literally by the hour depending on the latest social media post of the American president.”Murphy said Tesco would “do its best to minimise the impact on customers” and had demonstrated its ability to do so over the last six years of crises, from Covid to Brexit and the ensuing supply chain disruption.He said the biggest recent challenge for food supply had come from storms in southern Spain and north Africa, which supply large amounts of fresh produce to the UK in the winter and early spring, but shoppers “didn’t really notice” as the company had secured supplies elsewhere.However, he said: “Given how quickly the situation globally changes and the volatility of the actors involved, it would be wrong to give any guarantees.
”Tesco gave a warning over a potential drop in profits, which would be the first step back since 2023, after it hit its highest share of the market in a decade, topping 28%.The UK’s biggest supermarket revealed profits rose by 8.5% to £2.4bn in the year to 28 February, as sales rose by 4.3% to £66.
6bn, including strong growth in the UK,It has paid shop floor, distribution workers and other frontline staff a £65m “special performance award” in light of the results, while shareholders have received £937m in dividends during the year,However, the company said it had widened its guidance on profits for the year ahead to between £3bn and £3,3bn, adding: “Much will depend upon the duration of the conflict and in particular, the potential implications for UK households and the economy more broadly,”Murphy said Tesco had won over more shoppers because “despite cost pressures from new regulation, we have increased our investments in keeping prices low, further improving quality and offering even better service”.
He said there had been an “increase in competitive intensity” in the UK, in the face of which Tesco had ensured more than 10,000 of its products were cheaper at the year end than at the start, despite grocery price inflation across the market,Tesco aims to make £500m in new savings in the year ahead, which Murphy said would be ploughed into keeping prices down and improving product quality,The savings will include more use of AI in helping to work out when and how to mark down prices, as well as AI-led finance tools,Murphy said the chain was “committed to doing whatever we can to help keep down the cost of the weekly shop, and with the conflict in the Middle East creating further uncertainty for consumers and the economy more broadly, that commitment matters more than ever”,He said Tesco had not seen any meaningful changes in shoppers’ behaviour as a result of the conflict and households were still looking to eat more healthily and dine more at home.
Despite continuing pressures on household budgets, Tesco reported a 15% rise in sales of its Finest premium own-label range, an 11% increase in online grocery sales and a 51% jump in sales at Whoosh, its rapid home delivery service.
Metro Bank boss handed record £2.6m after slashing 1,000 jobs
Metro Bank’s chief executive has been handed a £2.6m pay packet – the largest in its history – a year after slashing 1,000 jobs in response to the lender’s near collapse.The figure is more than double the £1.2m Dan Frumkin was paid in 2024. Metro pushed through the pay bump and complex bonus scheme for the former RBS and Northern Rock banker at a shareholder meeting last year
Europe has ‘maybe 6 weeks of jet fuel left,’ energy agency head warns – business live
The head of the International Energy Agency has warned that Europe has about six weeks of jet fuel left.In an interview with Associated Press published today, IEA executive director Fatih Birol warned that flight cancellations could begin “soon” if oil supplies remain blocked by the Iran war.Birol said Europe has “maybe 6 weeks or so (of) jet fuel left,” after the effective closure of the strait of Hormuz led to “the largest energy crisis we have ever faced.”He told AP that the impact will be “higher petrol (gasoline) prices, higher gas prices, high electricity prices,” adding that some parts of the world will be hit worse than others.“The front line is the Asian countries” that rely on energy from the Middle East, he said, naming Japan, Korea, India, China, Pakistan and Bangladesh, adding:double quotation mark“Then it will come to Europe and the Americas
NAACP lawsuit accuses Elon Musk’s xAI of polluting Black neighborhoods near Memphis
A new lawsuit accuses Elon Musk’s artificial intelligence company of illegally spewing toxic pollutants into residential neighborhoods on the border of Tennessee and Mississippi.The suit, filed on Tuesday in Mississippi federal court, alleges xAI is violating the Clean Air Act due to emissions from its makeshift power plant in Southaven, Mississippi, which powers its datacenter there. The NAACP, represented by the environmental groups Southern Environmental Law Center and Earthjustice, says xAI has been polluting areas with homes, schools and churches, including in historically Black communities, by using dozens of methane gas generators without permits.The organization is seeking to force the company to stop operating its unpermitted turbines in Southaven.“A data center should not be a potential death sentence for a community’s health,” Abre’ Conner, the director of environmental and climate justice for the NAACP, said in a statement
Fisa surveillance vote sparks fierce debate as Congress splits on warrantless monitoring
A controversial law that grants the US government sweeping powers for warrantless surveillance is set to expire next week. Replacing it has inspired fierce debate within the White House and Congress, including a scheduled vote cancelled the day of.A coalition of progressive Democrats and far-right Republicans is pushing for reform of Section 702 of the Foreign Intelligence Surveillance Act (Fisa), but they face strong bipartisan opposition from lawmakers advocating for an 18-month renewal with no changes, in line with Donald Trump’s demands. House GOP leaders delayed a procedural vote on a clean extension of Section 702 on Wednesday, after the chamber’s rules committee approved the measure on Tuesday night. Republican leadership was expected to bring the measure to the floor on Wednesday but canceled the scheduled vote, amid dissent from privacy advocates in their own party
Gout Gout may be bigger than Cathy Freeman, but he alone is not athletics’ elixir
The video – shared millions of times across social media – is irresistible, showing Gout Gout recording the fastest 200m time by a teenager, ever, on Sunday at the national athletics championships in Sydney. Witness the moment in person, and it was one of Australian sport’s unforgettable days.Yet look at the background behind the teenager, and you see an almost empty grass hill. As Gout turns and celebrates, saluting the crowd, he does so to a half-empty grandstand.This was the highlight of the annual athletics calendar, a pleasant autumn afternoon in the middle of school holidays in Sydney, at a venue next door to the Royal Easter Show well serviced – on this day at least – by public transport
LIV Golf insists season will go ahead ‘at full throttle’ amid doubts over future
LIV Golf has insisted the tour intends to continue “uninterrupted and at full throttle” this season amid claims its Saudi Arabian backers will imminently withdraw having funded the breakaway league to the tune of $5bn (£3.68bn).The future of the rebel tour was mired in confusion on Wednesday following an executive meeting in New York and publication of a new Saudi investment strategy that did not mention sport and emphasised sustainability.As speculation grew, and with golfers and staff seemingly in the dark, LIV’s chief executive, Scott O’Neil, sent an email to staff, reaffirming the league’s position – at least for 2026.“I want to be crystal clear: Our season continues exactly as planned, uninterrupted and at full throttle,” O’Neil said in a hyperbolic rallying email, which the Guardian has seen
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