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BRITAIN-RETAIL-EARNINGS-TESCO
British supermarket giant Tesco posts rising profit
LONDON, April 10, 2019 (BSS/AFP) – British supermarket king Tesco on
Wednesday registered a nine-percent increase in annual net profits, helped by
cost-cutting and its acquisition of wholesaler Booker.
The nation’s biggest retailer posted the gains during a tough time for
British high street chains and in the face of stiff competition from low-
price rivals.
Tesco said in a statement that profit after tax increased to o1.3 billion
($1.7 billion, 1.5 billion euros) in the group’s 2018/2019 financial year to
February.
That compared with a slightly smaller net profit of o1.2 billion in
2017/2018.
Pre-tax profits meanwhile surged by almost a third to o1.67 billion.
Revenues, aided by last year’s o3.7-billion purchase of Booker, jumped
11.2 percent to o63.9 billion.
In home market Britain, like-for-like sales — which strip out the impact
of new floor space — rose 1.7 percent.
The performance was praised by chief executive Dave Lewis, who was
parachuted into Tesco in 2014 to help transform fortunes at the group which
had posted a record loss in 2014/2015.
Lewis embarked upon a radical cost-cutting and asset-selling
transformation plan as also he sought to combat fierce domestic competition,
particularly from German discounters Aldi and Lidl.
“After four years we have met or are about to meet the vast majority of
our turnaround goals,” Lewis said on Wednesday.
“I’m very confident that we will complete the journey in 2019/20.
“I’m delighted with the broad-based improvement across the business.”
Tesco is the world’s third-biggest supermarket chain after France’s
Carrefour and global leader Walmart of the United States.
The positive result comes in difficult period for British retailers.
On Tuesday retail stalwart Debenhams was taken over by lenders after
falling into administration, and the last 18 months has seen the demise of
clothing outlet Calvetron, music retailer HMV, the Toys ‘R’ Us toy chain,
Maplin electronics stores and discount store Poundworld.
BSS/AFP/HR/1315