Analysts are expecting Tesco’s group pre-tax profit to increase by more than 20% year-on-year to about £1.7bn - last year they stood at £1.36bn.
“Tesco’s sales will be incredibly strong,” said Rhys Williams of Seymour Pierce.
“It has continued to increase sales in the post-Christmas period, unlike other retailers such as Sainsbury, Big Food Group and Marks and Spencer, which have experienced a slowdown in the first quarter of 2004.”
One analyst said: “Tesco’s strategy of matching Asda’s prices combined with its multi-formats offers little hope for Asda and Sainsbury of ever combating its progress.”
However, another analyst warned that investors would have to factor in that Tesco had a 53rd week in this financial year, which would add about 1.8% to turnover for the full-year and 6.5% for the last quarter and about £20m to the profit line.