New figures show
Tesco has seen its first rise in UK sales for eight years. This is particularly good news for the retailer as it gears up for the £3.7bn Booker takeover.
The supermarket chain has reported a 29.9 per cent jump in group operating profits and exceptional items to £1.3bn, while group sales, which include its overseas operations, rose by 3.7 per cent to £55.9bn in the year to February 25.
However, pre-tax profits fell to £145m from £202m after booking a £129m fine with the Serious Fraud Office over its accounting practices.
Dave Lewis, chief executive, said: “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.
“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.”
“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.”