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News
Tesco beats downturn
It was as if the recession had never happened when Tesco announced its results yesterday. Unlike many retailers, the UK supermarket reported strong sales and growth in profit. Tesco generated an 11.8% rise in underlying profit, taking it up to £2.85bn for the year to February 23. Meanwhile, sales rose 11% to £51.8bn.
Tesco attributed its success to the added exposure it had gained in China, Thailand and Turkey, where economies are growing fast. In fact, overseas stores delivered 54% of growth in group sales and half the growth in group trading profit in the year. The company reported a 24% increase to £700m in trading profits in its international arm while sales grew by 25% to £13.8bn, with China contributing £702m to sales. Tesco expects its overseas business to account for 80% of the new retail space added this year.
CEO Sir Terry Leahy said the company had cut costs and is offering more promotions in light of a tougher economic climate in the UK.
Fionnualla Synnott, 16/04/08