Tesco back in the black

Tesco has published preliminary results covering the 52 weeks ended 27th February.

For the full publication, please visit our Industry Articles pages http://www.insightdiy.co.uk/articles.htm

Highlights of the results include:

Significant progress on all three transformation priorities
- UK like-for-like sales growth of 0.9% in 4Q; Group like-for-like sales growth of 1.6% in 4Q
- £6.2bn reduction in total indebtedness, including contribution from sale of Homeplus in Korea
- Customer, colleague, supplier measures all improved

Guided by a clear purpose, ‘serving shoppers a little better every day’
- UK customer satisfaction up 5% over the course of the year
- UK volumes up 3.3% in 4Q; UK transactions up 2.8% in 4Q
- International volumes up 5.5% in 4Q

Achieved what we set out to do
- £944m operating profit before exceptional items
- Retail operating cash flow of £2.6bn
- Initial £400m cost saving programme delivered
- UK & ROI property now 47% freehold (+6%) following two further transactions in Feb 2016

Improving trends across the Group
- Positive and improving like-for-like sales growth trends in all regions: UK, ROI, Europe and Asia
- Improving sales performance in all formats and categories
- Strong growth in Tesco Bank customer deposits and lending
- Continued growth at Tesco Mobile, the UK’s largest MVNO – now 4.6m customers

Clear commitment to the customer
- The customer is and always will be our prime focus
- Continuing to invest to improve the competitiveness of our offer
- Seven exclusive fresh food brands launched in March 2016

Dave Lewis, Chief Executive:

“We have made significant progress against the priorities we set out in October 2014. We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices. Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.

Our process of transformation has generated broad-based positive momentum in the UK and internationally. We set out to start rebuilding profitability whilst reinvesting in the customer offer, and we have done this. More customers are buying more things more often at Tesco.

As a team, we are committed to serving shoppers a little better every day, in what remains a challenging, deflationary and uncertain market. We are confident that the investments we are making are leading to sustainable improvements for customers whilst creating long-term value for our shareholders.”

Source : Tesco Press Release
www.tescoplc.com