British supermarket giant Tesco has cautioned that profits could decline in the coming year due to "increased uncertainty" stemming from the conflict in the Middle East, even as it reported strong annual results. The retailer posted an 8.5% rise in profits to £2.4 billion for the year to February, with sales climbing 4.3% to £66.6 billion, but it widened its forward guidance to a range of £3 billion to £3.3 billion, noting that outcomes will depend heavily on the duration of the conflict and its impact on UK households and the broader economy. Chief executive Ken Murphy said Tesco remains committed to keeping prices down for consumers, and the company plans to achieve £500 million in new savings through measures including expanded use of artificial intelligence in pricing and finance.