Tesco today (12 April) announced a strong financial performance as its group profit recovery continues, according to its preliminary results 2016/17.
Tesco posted an overall increase of 4.3% bringing its 2016/17 profits to £49.9 billion compared to the previous year of £47.9 billion.
However, sales in its Republic of Ireland operation were down marginally (-0.1%) for the year, while International sales were up 1.3%.
It outlined that one of the key drivers which 'guided its actions' is its brand health, which is at the highest its been in five years.
According to Dave Lewis, Chief Executive, Tesco “Today, our prices are lower, our range is simpler and our service and availability have never been better. Our exclusive fresh food brands have strengthened our value proposition and our food quality perception is at its highest level for five years. At the same time, we have increased profits, generated more cash and significantly reduced debt."
Tesco also showed a positive volume growth across the board both in the ROI and UK as well as on an international scale.
Its group operating profit before exceptional items increased by 60% to £803 million in the ROI and UK.
"We are ahead of where we expected to be at this stage, having made good progress on all six of the strategic drivers we shared in October. We are confident that we can build on this strong performance in the year ahead, making further progress towards our medium-term ambitions," added Lewis.
In January, of this year Tesco announced that it had 'agreed the terms of a proposed merger with Booker, focused on unlocking new growth, particularly in the faster-growing ‘out of home’ food market'.
Lewis said, "On top of this, our proposed merger with Booker will bring together two complementary businesses, driving additional value for shareholders by realising substantial synergies and enabling us to access the faster growing ‘out of home’ food market.”
Looking ahead, the retailer said, "We made good progress over the last year, further strengthening our customer offer and delivering an improvement in profitability a little ahead of expectations."
© 2017 - Checkout Magazine by Donna Ahern