Tesco Fiscal Year 2019 Pretax Profit Rose 29%
April 10 2019 - 03:00AM
Dow Jones News
By Adriano Marchese
Tesco PLC (TSCO.LN) said Wednesday that pretax profit rose 29%
in fiscal 2019 and that it is making progress toward its cost
savings target.
The U.K. supermarket chain said pretax profit was 1.67 billion
pounds ($2.18 billion) in the year ended Feb. 23, compared with
GBP1.3 billion in fiscal 2018. Adjusted operating profit--Tesco's
preferred metric that strips out exceptional and other one-off
items--rose 34% to GBP2.21 billion, compared with a FactSet
forecast of GBP1.57 billion based on five analysts estimates.
Sales for the year were up 11% at GBP63.91 billion, compared
with a forecast of GBP64.07 billion, according to a
FactSet-provided consensus of 12 analyst estimates.
Tesco, which has been fighting to maintain its market share
against discount grocers, said it reduced in-year costs by GBP532
million, with savings of GBP1.4 billion toward its target of GBP1.5
billion. Some of the measures of the savings program included
closing Tesco Direct and developing more sustainable general
merchandise categories, the company said.
The board declared a final dividend of 4.10 pence a share,
bringing the total payout to 5.77 pence, up from 3.0 pence the year
before.
"After four years we have met or are about to meet the vast
majority of our turnaround goals. I'm very confident that we will
complete the journey in 2019-20," Chief Executive Dave Lewis
said.
Write to Adriano Marchese at adriano.marchese@dowjones.com
(END) Dow Jones Newswires
April 10, 2019 02:45 ET (06:45 GMT)
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