Skip to main content

+44 (0) 121 237 1130

info@bheta.co.uk

Join BHETA

Retail Viewpoint – Tesco

Tesco profits skyrocket as the UK’s biggest retailer delivers ninth consecutive quarter of growth

Tesco released glowing preliminary results for FY2017/18 this morning, smashing forecasts with a whopping pre-tax profit leap of 795.2% to £1,298m on a poor comparative of £145m – indicating that the grocer has successfully fought intense competition from both discounters Lidl and Aldi and has seemingly shrugged off macro-economic issues that have affected the majority of UK retailers.

And while this pre-tax profit leap may be a singular event, all other KPIs suggest that Tesco is on track to keep the top position in the convenience market. The increase in operating profit before exceptional items drove a 6.1% boost in share price this morning, and the company announcing a 3p per share dividend – the first since 2014.

Tesco boss Dave Lewis will be particularly pleased with the tangible success of the Group’s UK division as l-f-l sales increased 2.2%, supported by a stronger performance in the second half of 2017, based on consistent growth in fresh food, own-brand products and adding an additional 260,000 customers. This certainly supports Tesco’s claim of a strengthening in own-brand sales and improvements in both quality and value – and, coupled with the forecast £200m per annum synergistic savings from the £3.7bn Booker merger, Tesco looks well placed to maintain its position as the formidable force in UK retail and weather future troubles that may extinguish other household names.

Source: GlobalData 18 April 2018

April 2018


Strictly Necessary

These cookies are required for our website to operate and include items such as whether or not to display this pop-up box or your session when logging in to the website. These cookies cannot be disabled.

Performance

We use 3rd party services such as Google Analytics to measure the performance of our website. This helps us tailor the site content to our visitors needs.

Functional

From time to time, we may use cookies to store key pieces of information to make our site easier for you to use. Examples of this are remembering selected form options to speed up future uses of them. These cookies are not necessary for the site to work, but may enhance the browsing experience.

Targeting

We may use advertising services that include tracking beacons to allow us to target our visitors with specific adverts on other platforms such as search or social media. These cookies are not required but may improve the services we offer and promote.

Change Settings

Welcome. You can control how we use cookies and 3rd party services below

Change Settings Accept
Learn how we use cookies