By Adriano Marchese

 

Tesco PLC (TSCO.LN) reported market-beating fiscal 2019 profits on Wednesday.

 

SALES FORECAST: The U.K. supermarket chain reported an 11% rise in sales for the year ended Feb. 23 to 63.91 billion pounds ($83.49 billion), compared with a forecast of GBP64.07 billion, according to a FactSet-provided consensus of 12 analyst estimates.

 

PRETAX PROFIT: Tesco's profit before tax was GBP1.67 billion, compared with consensus forecasts of GBP1.57 billion, according to a FactSet-compiled consensus of five forecasts.

 

ADJUSTED OPERATING PROFIT: The grocer reported an adjusted operating profit--its preferred metric, strips out exceptional and other one-off items--of GBP2.21 billion, compared with a FactSet forecast of GBP2.08 billion based on four analysts' estimates.

 

WHAT WE WATCHED:

-SAVINGS DELIVERED: Tesco has reduced in-year costs by GBP532 million, with savings of GBP1.4 billion toward its target of GBP1.5 billion.

-DISCOUNT RIVALS: Tesco's recently launched discount brand Jack's--which was created to compete with German discounters Aldi and Lidl--has seen a strong response from customers.

 

Write to Adriano Marchese at adriano.marchese@dowjones.com

 

(END) Dow Jones Newswires

April 10, 2019 10:01 ET (14:01 GMT)

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