Just to put the idiot in his place12 Dec 2017 11:19
Headlines
Positive sales and profit growth,
Strong cash generation
Group sales up 3.3% to £25.2bn
Seventh consecutive quarter of growth
UK like-for-like sales up 2.2%;
Transactions up 0.4%;
Volumes up 0.3%
Strong fresh food volume growth in the UK of 1.5%
Group operating profit before exceptional items up 27.3% to £759m;
UK & ROI up 21.1% to £471m
Group operating margin up to 2.7% from 2.2% last year; on track for 5-4.0% ambition by 2019/20
Improved profit margin in Central Europe (up 132 basis points) and in Asia (up 146 basis points)
Retail operating cash flow up 19.3% to £1.1bn;
Retail free cash flow of £586m
Triennial pension review concluded; annual contributions to increase by £15m to £285m from April 2018
Interim dividend of 1.0p per share reflects improved performance and Board confidence
Statutory revenue up 3.7% to £28.3bn;
Profit before tax up £491m to £562m
Further progress against each of our six strategic drivers
Brand health continues to strengthen; voted ‘Britain’s favourite supermarket’ for 3rd consecutive year10
Further cost savings of £259m achieved in 1H towards the £1.5bn medium-term target; £485m to date
Generated £1.1bn of retail operating cash;
£237m underlying working capital11 inflow
Improving the mix across geographies and channels; 1.6% like-for-like sales growth in our UK Extra format
Released a further £175m value from property;
50 sites sold; 0.4m sq. ft. space re-purposed
Dave Lewis, Chief Executive:
“We are continuing to make strong progress. Sales are up, profits are up, cash generation continues to strengthen and net debt levels are less than half what they were when we started our turnaround three years ago. All of this is possible because of the focus we have placed on serving shoppers a little better every day. Our offer is more competitive and more customers are shopping at Tesco.
Today’s announcement that we are resuming our dividend reflects our confidence that we can build on our strong performance to date and in doing so, create long-term, sustainable value for all of our stakeholders.”