Tesco preliminary FY17 revenues up 2.3 percent

Tesco Plc sales increased 2.3 percent to 51 billion pounds (72.4 billion dollars); ninth consecutive quarter of like-for-like sales growth in Q4 with UK like-for-like sales up 2.2 percent. Group operating profit before exceptional items increased 28.4 percent to 1,644 million pounds (2,355 million dollars). The company said, group operating margin rose 2.9 percent or 57 bps; 3 percent or 64 bps in the second half, well on track for 3.5-4 percent 2019/20 ambition. Tesco has announced final dividend of 2p, giving FY dividend of 3p.

Commenting on the preliminary results, Dave Lewis, Chief Executive of Tesco said in a press release: “This has been another year of strong progress, with the ninth consecutive quarter of growth. We have further improved profitability, with group operating margin reaching 3 percent in the second half. All of this puts us firmly on track to deliver our medium-term ambitions and create long-term value for every stakeholder in Tesco.”

Statutory revenues rise 2.8 percent

Statutory revenue rose 2.8 percent to 57.5 billion pounds (81.6 billion dollars) and profit before tax was up 1,153 million pounds (1,637.6 million dollars) to 1,298 million pounds (1,835.3 million dollars).

The company said, it remains on track to deliver the medium-term ambitions set out in October 2016: to reduce our costs by 1.5billion pounds (2.1 billion dollars), to generate 9 billion pounds (12.7 billion dollars) of retail cash from operations and to improve operating margins to between 3.5 percent and 4 percent by 2019/20.

Picture:Tesco website