Leaving on a high? Tesco returns to profit as Czech sale plans loom

Tesco’s Czech business has returned to profit as the British supermarket group reportedly pursues a sale of its Central European operations, including its stores in Czechia.

Tesco Stores ČR reported a profit of CZK 387 million for the financial year ending Feb. 28, 2026, reversing a CZK 488 million loss the previous year. Revenue increased just 0.4 percent to approximately CZK 44.5 billion, according to its filed accounts.

The turnaround comes against uncertainty over the chain’s ownership. Reports of a potential sale have progressed since July, although they do not amount to a confirmed departure or an announcement of store closures.

The Financial Times first reported in July that Tesco was exploring options for its businesses in Czechia, Slovakia and Hungary.

In September, the newspaper identified potential bidders including Schwarz Group, which owns Lidl and Kaufland, Albert owner Ahold Delhaize, and Biedronka. Reuters reported that Tesco and several other parties declined to comment.

A sale would represent a further retreat from Tesco’s international operations. Its Central European division is the group’s only substantial business outside Britain and Ireland, following earlier overseas disposals.

The Czech accounts show an improving financial result, but little revenue growth. Tesco attributed the trading environment to gradually recovering household purchasing power, supported by rising real wages.

“Household consumption remains a key driver of economic growth,” the company said in its accounts.

Tesco operates 184 stores in Czechia across formats ranging from hypermarkets to smaller neighborhood shops, alongside its online grocery service.

Its sister company Tesco Franchise Stores ČR, which operates the Žabka network, also returned to profit. It recorded earnings of CZK 16.6 million, compared with a CZK 13 million loss a year earlier.

Žabka’s revenue rose approximately 0.4 percent to CZK 1.58 billion. Its network numbered 113 shops, four fewer than in the previous year.

At Tesco Stores ČR, the average employee count declined from 6,406 to 6,333. Personnel costs nevertheless increased approximately 3.2 percent to CZK 5.03 billion, including wages and social and health insurance contributions.

Tesco entered the Czech market in 1996. Its activities now extend beyond groceries to 17 filling stations, F&F clothing and the Tesco Mobile virtual mobile operator.