More than a quarter of the UK’s largest retail network, Tesco’s result, has improved in the 2017-2018 financial year. The Central European division of the company was particularly successful: the result of the regional Tesco network has more than doubled.
According to a 69-page preliminary report released on Wednesday, the London Stock Exchange reported that the group-level operating profit before exceptional items increased by 28.4 percent to 1,644 billion pounds (590 billion forints) from the previous year’s 1.28 billion pounds.
Group meals grew by 2.3 percent to £ 51 billion in the 2016-2017 period, and net debt fell by 29.6 percent, from £ 3,729 billion to £ 2,625 billion over the same period.
According to the preliminary results report, the annual results of the Tesco Central European network, calculated in excep- tional terms, were 105.2 percent, from 58 million to 119 million pounds (almost 43 billion forints), as a result of the 2017-2018 financial year year.
According to the provisional announcement on Wednesday, Tesco has achieved revenues of HUF 577.2 billion in the last fiscal year – at a rate of HUF 351.70 per pound average exchange rate of £ 1,641 billion. In the Central European EU region, this was only preceded by the Polish Tesco network with an annual revenue of 2.2 billion pounds.
The results report highlights: Tesco has made further progress in developing its strategy, based on which the company treats the four Central European EU markets as “a single combined area”.
The report emphasizes that the company has opened a new distribution center last year in Galanta, Slovakia, serving all four countries in the region. The benefits include a more efficient inventory management, which, together with other cost savings measures, has exceeded the effects of inflation on the cost base side and has improved the profitability of regional operations.
Dave Lewis, CEO of Tesco, in his comment on Wednesday’s results report, highlighted that the nine-quarters of the aggregate performance of the company has been growing steadily, and the net debt level of the group has fallen by almost 6 billion pounds over the past three years.
Tesco has been involved in hundreds of millions of important over-accounting scandals for four years and has reported a total loss of 6.33 billion pounds after the outbreak of the scandal since February 2015. This was the worst yearly result of Tesco’s centuries-old history and is one of the biggest annual corporate losses in modern British economics.
Following the breakdown of the accounting scandal, Tesco’s then chief of staff resigned and the current CEO, Dave Lewis, who was in the autumn of 2014, announced a full turnaround. With this in mind, the company closed 53 loss-making UK businesses in the post-scratch calendar year, wiped out 49 new stores that were previously planned and sold its South Korean business network.
Tesco announced the sale of its international portfolio of portfolios after the sale of the South Korean network.
Following the disclosure of the preliminary results published Wednesday, 2017-2018, Tesco’s stock trading in the morning trading of the London Stock Exchange rose by almost 5.7% to 2.22 pounds, far exceeding the FTSE 100 index of the largest capital companies, which was 0, 26 percent weaker than last day closing.
MTI / Photo: PrimeLocation