UK retailer Tesco's sales surge 5.3% in FY23

Tesco's statutory revenue for the year was £65,762 million, up 7.2 per cent. However, the company's total retail adjusted operating profit was down 6.3 per cent at constant rates, at £2,487 million. The UK and ROI adjusted operating profit was £2,307 million, down 7 per cent, driven by lower year-on-year (YoY) volumes and ongoing investment in customer offers. The Central Europe adjusted operating profit was £180 million, up 3.6 per cent, with volumes resilient in the face of significant market inflation, the company said in a press release.

Tesco's statutory operating profit for the year was £1,525 million. The company's retail free cash flow was £2,133 million, including a working capital inflow of £468 million. Tesco's adjusted diluted earnings per share (EPS) were flat YoY at 21.85p, while the statutory diluted EPS was 10.08p, down YoY due to the impairment charge.

Looking ahead, Tesco expects to deliver a broadly flat level of retail adjusted operating profit in FY24 and retail free cash flow within its target range of £1.4-1.8 billion.

“It’s been an incredibly tough year for many of our customers, and we have been determined to do everything we can to help. Our results reflect our continued investment in delivering great value and quality for our customers, whilst at the same time looking after our colleagues.  This is despite unprecedented levels of inflation in the prices we have paid our suppliers for their products, and the cost of running our own operations. I am very proud of the way the Tesco team has responded to these challenges and would like to thank every colleague for the contribution they have made,” said Ken Murphy, chief executive.

Fibre2Fashion News Desk (DP)