UK-based retailer Tesco has posted an 8.1 per cent growth in sales – at £67.6 bn – for the financial year ended February 26, 2011, the company said in a statement.
Tesco’s underlying profit before tax rose 12.3 per cent to £3.8 bn, while the group trading profit increased 7.8 per cent to £3.67 bn.
In terms of UK retail sales, excluding petrol and VAT, like-for-like sales were flat, with an overall reduction of 0.1 per cent in the second half of 2010.
In the Asian markets, Tesco has seen significantly improved sales growth compared to last fiscal, except for Japan, where economic as well as industry trading conditions remain difficult. “Our performance in Asia was helped by favourable exchange rate movements, but profits grew by almost 18 percent at constant currency,” the statement said.
Tesco further said Asian markets offered an exciting long-term growth opportunity and will be a key focus for its future international expansion. “Having continued to invest through the downturn, we are now in an even stronger position as economic recovery continues,” it further said.
Commenting on the financial results, Philip Clarke, chief executive of Tesco, said, “I am pleased with our strong overall performance in the face of some challenging conditions and we are well-positioned, with multiple opportunities to deliver long-term growth and rising returns. I want to thank the 500,000 people who work at Tesco for their contribution to this performance.”
He added, “We have equipped the business for global growth with new management structures and teams, including an experienced UK Board, which is bringing more focus and energy to our largest business. Asia and Europe made excellent progress, contributing nearly 70 per cent of our profit growth in the year. The momentum in the US is building but still has some way to go.”
– IndiaRetailing Bureau