Tesco “weathers storm” with 10% profit jump

Posted by Josette Dunn on 21st April 2010

* Pre-tax profits up 10%; trading profits rise 12%

* Turnover climbs almost 7%

* Asia trading profits increase 18.9%

UK retail giant Tesco yesterday (20 April) booked a 10.1% rise in annual profits as earnings in Asia jumped and the company boosted its domestic business with investment in loyalty scheme Clubcard.

Tesco reported underlying pre-tax profits of GBP3.34bn (US$5.13bn) for the 52 weeks to 27 February, a rise of 10.1% on the year.

Trading profit was up 12.3% to GBP3.41bn, while group sales climbed 6.8% to GBP62.54bn.

Chief executive Terry Leahy said Tesco had “weathered the economic storm well” and insisted its business was stronger now than before the recession.

“Our positions in international markets and non-food meant we faced strong headwinds when the downturn came but it will be these parts of our business which will grow fastest as the recovery strengthens,” Leahy said.

“Across all parts of our strategy – UK, international, non-food, services – our business is now stronger than it was before the recession.”

just-food is the world’s leading portal for the global pre-packaged food and retail industries. Its daily mix of breaking news, views, analysis and research serves over 100,000 food executives each month. http://www.just-food.com/