Tesco profits fall 6% to £3.3bn
Supermarket giant sees second consecutive fall in full year profits as it struggles at home and abroad
Wednesday 16 April 2014
Tesco chief executive Philip Clarke has come under renewed pressure after Britain's largest retailer posted its second fall in annual profits.
Tesco posted a 6 per cent fall in group trading profit to £3.3 billion in the year to 22 February. Its group sales edged up 0.3 per cent to £70.9bn. In the UK, profits fell 3.6 per cent to £2.2bn and sales at shops open more than a year fell 1.4 per cent.
Tesco said its “performance in the year was not where we had planned it to be".
The grocer has been battling problems at home and abroad. In the UK it faces stiff competition from rapidly growing smaller rivals including Aldi, Lidl and Waitrose while in Europe the Eurozone crisis continues to impact consumer spending.
Tesco also revealed a one-off charge of £801 million mainly relating to a write-down of assets in Europe, as well as a £540 million impairment relating to its Chinese business.
Chief executive Philip Clarke said: “Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before. We are determined to lead the industry in this period of change.
“During the year, we have maintained our focus on cash and capital discipline. We have significantly reduced our new investment in Europe, focusing the majority of our overseas capital on targeted, high-returning investments in Korea, Malaysia and Thailand.
“We have completed our exit from the US and established partnerships with CRE in China and Tata in India which provide continued access to two of the world's most exciting markets, consistent with a sustainable level of future investment."
Actress sees off speculation about her appearance in an amazing way
Powerful images of strays taken moments before being put down
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
Children's bookseller wins The Independent's new author search
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Chicago voter tells Obama 'don't touch my girlfriend' – Obama stays super smooth
Oscar Pistorius: The brutal prison life that awaits disgraced athlete
Banksy has not been arrested: Internet duped by fake report claiming artist's identity revealed
Raphael Ravenscroft dead: 'Baker Street' musician who played the most famous saxophone solo for just £27, dies aged 60
Darren Vann: Indiana man arrested for murdering teenage prostitute confesses to six other murders - and police fear more
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Of course, teenage girls need role models – but not like beauty vlogger Zoella
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...