Tesco posts increase in first half revenue and profit

Tesco plc has reported sales growth of 6.6 percent at actual rates, including a negative 0.2 percent foreign exchange translation impact due to the appreciation of sterling to 26.7 billion pounds. Revenue growth was 6.8 percent at constant exchange rates. The company said in a statement that group operating profit before exceptional items and amortisation of acquired intangibles was 1,037 million pounds, down 15.8 percent at constant exchange rates and down 15.6 percent at actual rates. On statutory basis, revenue rose 0.7 percent to 28.7 billion pounds, operating profit declined 4.5 percent to 1,007 million pounds, while profit before tax was 551 million pounds, up 28.7 percent. Tesco also announced the appointment of Tate & Lyle PLC’s Imran Nawaz as its new Chief Financial Officer.

“The first half of this year has tested our business in ways we had never imagined. We are absolutely committed to continuing to invest in value for customers and safety for all in these uncertain times. Tesco is a great business with many strategic advantages,” said Ken Murphy, Tesco’s Chief Executive Officer.

Tesco said that in the UK and the Republic of Ireland (ROI), total sales grew by 8.6 percent or 8.5 percent at constant exchange to 24.3 billion pounds. The company further said that growth in the half was most marked in online with sales up 69 percent with the rate of growth reaching 90 percent during the second quarter.

The company said that the interim dividend has been set at 3.20 pence per ordinary share, 20.8 percent higher year-on-year, in line with the policy of setting interim dividend at 35 percent of the prior year full-year dividend. Tesco expects to maintain a full year dividend pay-out ratio of 50 percent going forward.

Picture:Tesco media library