Tesco posts uplift in profit after strong year
Tesco has posted an uplift in full year profit after seeing its group sales rise by 2.3% to £51 billion.
Pre-tax profit climbed to £1.3 billion in the year to 24 February from £145 million in the prior year while group operating profit before exceptional items rose by 28.4% to £1.64 billion.
UK like-for-like sales increased by 2.2% in the period as the retailer worked with its suppliers to mitigate price increases in the face “challenging” market conditions and continued cost price inflation.
The retailer attracted 260,00 more shoppers in the year.
Dave Lewis, Tesco chief executive, said: “This has been another year of strong progress, with the ninth consecutive quarter of growth. More people are choosing to shop at Tesco and our brand is stronger, as customers recognise improvements in both quality and value.”
Tesco said its own brand ranges had performed well with like-for-like sales growing at at 4.2% year-on-year. The retailer has embarked on a re-launch of over 10,000 own brand products across its entry, core and finest ranges, with the initial focus on ready meals and Italian products.
Looking at Tesco’s international markets, like-for-like sales in Central Europe edged up 0.3%. Meanwhile, like-for-like sales in Asia were down 10% following the retailer’s decision to withdraw from unprofitable bulk selling activities in Thailand and scale back mass couponing,
During the year, Tesco completed its merger with wholesaler Booker.
Lewis added: “I am delighted to have completed our merger with Booker, and we are moving quickly to deliver synergies and access new growth, making the most of the complementary skills in our combined business.”
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