Tesco, based in Welwyn Garden City, United Kingdom is one of the biggest grocery shops in the UK with revenue of £57,887m in the 2021 Fiscal year.

Table of Content

Financial Highlights February 2022 YoY Financial Comparison February 2022 Financial Results Additional Key Highlights
 

Tesco - Financial Highlights

  • Total retail adjusted operating profit increased by 35.8% to £2,649m
  • Net debt reduced by +£1.4bn since last year driven by strong cash flow
  • Total revenue increased from £57.9bn to £61.3bn

Source: Tesco Preliminary Results

 

February 2022 Financial YoY Comparison

  • Total company revenue was £61,344 million in February 2022 (52-weeks-ended), compared with £57,887 million during the same period last year
  • The operating expense ratio during this period decreased to 95.83% in February 2022 (52-weeks-ended) from 97% during the same period last year
  • There is an observable increase in the operating profit ratio from 3% in February 2021 (52-weeks-ended) to 4.17% during the same period this year
  • The net income ratio came down to 2.42% in February 2022 (52-weeks-ended) from 10.62% during the same period last year  

Source: Tesco Results And Presentations

 

February 2022 Financial Results

  • One-year like-for-like sales grew by +0.4%, including the growth of +1.2% in the first half before sales declined by (0.5)% in the second half
  • Central Europe adjusted operating profit was £168m, an increase of +41.1% at constant rates
  • Tax on adjusted Group profit was £(502)m, £(253)m higher than last year, which reflects the higher levels of both retail and Tesco Bank operating profit

Source: Tesco Preliminary Results

 

Additional Key Highlights

Capital Return Programme

  • Tesco plans to announce any new forward commitments regarding its capital return program as part of the preliminary results each April
  • Estimation and calculation state that by April 2023, Tesco will have bought back a cumulative £1.05bn worth of shares since the start of the program

Magnetic Value for Customer

  • Value perception beat the market by 91bps; on one hand, quality perception increased by 11bps while the market declined by 32bps
  • The brand index further improved +9bps on top of an exceptionally strong performance last year
  • Continues to offer healthier choices through reformulation, by removing 7.7bn more calories
  • Tesco removed 1.6bn pieces of plastic to date. It is UK’s first nationwide soft plastic recycling network rolled out in March 2021

Easily the Most Convenient

  • Online sales remain significantly ahead of pre-COVID levels; market share +142bps to 34.8%; orders held at c.1.2m/wk
  • With CCPC approval, Tesco announced its intention to purchase 10 Joyce's Supermarkets in the Republic of Ireland
  • The 'Tesco Whoosh' speedy delivery service is already available from more than 200 stores and will be expanded to 600 outlets this year

Save to Invest

  • Tesco announced the removal of counters in 317 stores in February, repurposing space to better reflect customers’ needs
  • For goods and services not there for resale, simpler supplier agreements and enhanced procurement procedures are being implemented

Source: Tesco Preliminary Results

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