Tesco Returns To Profit After Record Loss

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Source:   —  April 13, 2016, at 12:42 PM

Britain's biggest supermarket is back in the black as boss Dave Lewis hails signs of a turnaround eighteen months after taking over.

Tesco Returns To Profit After Record Loss

Tesco has swung to an annual pre-tax profit of £162m after a record loss of £6.33bn a year ago.

Britain'south biggest supermarket hailed "significant progress" in its turnaround as it published annual results for the year to twenty-seven February.

It also reported a 0.9 percent rise in UK like-for-like sales for the fourth quarter, its first full quarter of growth since two thousand thirteen - as the group'south recovery below boss Dave Lewis gathers pace.

The figure includes a powerful performance over the six-week festive period when sales rose by 1.three%.

But shares fell four percent as Tesco said it was continuing to slice prices to stay competitive in a "challenging, deflationary and uncertain market" which would unhurried the pace of profit improvement, particularly in the first half.

Mister Lewis said: "We've made significant progress against the priorities we set out in October two thousand fourteen.

"We've regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices."

 in the previous year as it took huge accounting write-offs on the cost of its business amid a ferocious supermarket price war. It's also been hampered by a scandal centred on a £326m accounting black hole.

Mister Lewis, a former Unilever executive, was appointed as chief executive in Sept 2014 after the supermarket parted company with predecessor Philip Clarke.

Tesco said that during the latest financial year it'd improved service by adding 9.000 "customer-facing" roles and reducing prices on thousands of products.

The supermarket has also reviewed each of its thirty-three food categories, reducing the no of products by eighteen%, and slice the price of an average weekly shop by 3 percent in the latest year, while introducing 2.000 new lines.

A management shake-up has seen twenty-five percent of office-based roles reduced, while sixty unprofitable stores have been closed.

Latest annual results stripping out finance costs showed an operating profit of £1.05bn, up from a £5.75bn loss the year before.

Mister Lewis has sought to streamline the business by selling off its loss-making Blinkbox online video operation and switching its main headquarters from Cheshunt to Welwyn Garden City.

It's also  including garden centre chain Dobbies and restaurant business Giraffe.

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