Tesco returns to full year profits
Supermarket giant, Tesco’s has reported a bottom-line pre-tax profit of £162m for the three-month period to the end of February, the first quarter of sales growth since 2012. This compares to losses of £6.3 billion the previous year.
It also said that its like-for-like sales performance in Ireland turned positive in the fourth quarter for the first time since 2012.
Tesco’s chief executive Dave Lewis said the company had made significant progress against the priorities it had set out in October 2014 despite the “challenging, deflationary and uncertain market”.
“Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case,” Mr Lewis said.
Mr Lewis said the company’s 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,” he stated.
“We are confident that the investments we are making are leading to sustainable improvements for customers whilst creating long-term value for our shareholders,” he added.
While the results showed Tesco’s trading has turned the corner, Mr Lewis was reluctant to call the end of falling sales, stressing the group continued to trade in “uncertain times”.
Tesco added the chain’s investment in price cuts would slow its profit improvement, “particularly in the first half”.
Under Mr Lewis, Tesco has shut 60 unprofitable stores since the start of its financial year and shelved plans to open a further 49 shops.
He has also cut prices across hundreds of lines, while making a raft of changes such as shutting Tesco’s final salary pension scheme and selling its loss-making Blinkbox operation selling online videos.
