Tesco profits rebound as turnaround continues
Profits at Tesco have soared as the UK’s biggest supermarket continues its revival under boss Dave Lewis. The group reported pre-tax profits of £1.3bn for the year to 24 February, up from £145m for the previous year, as UK like-for-like sales rose 2.2%.
The jump follows years of disappointing results for Tesco after an accounting scandal and overambitious expansion. The retailer said the grocery market remained challenging due to ongoing pressure on costs. Shares rose nearly 6% to 222.4p, valuing the company at £21.7bn.
Mr Lewis said it had been a year of strong progress, with the ninth consecutive quarter of growth. “Tesco is growing again, recovering profitability and generating significant cash,” he said.
“Whilst we take some comfort from what it is we have done, we are very clear that there’s more to do. It’s definitely not job done.”
Tesco’s performance has gradually improved since 2014, when it reported the worst results in its history with a record pre-tax loss of £6.4bn.