British retailer Tesco has indicated that the Middle East is generating some uncertainty over its profit margin for next year.
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British retail giant Tesco has indicated that the conflict in the Middle East is generating some uncertainty over its profit margin for the next financial year. The retailer has published its preliminary financial results for the year 2025/2026, and also issued an outlook for the 2026/2027 year. The group said that it is providing a “wider range of guidance than we were previously planning” due to the increased uncertainty caused by the conflict in the Middle East. Tesco said that much will depend on the duration of the conflict, and particularly the implications for households and the economy more broadly. At this stage, Tesco said it is expecting to deliver an operating profit for 2026/2027 of between £3 billion and £3.3 billion. In the preliminary results for 2025/2026 announced this week, Tesco said it sales reached £66.6 billion, a 4.6% increase on the prior year. Its adjusted operating profit stood at £3.2 billion, a small increase of 0.8%. Free cash flow was reported as ...