Tesco enjoys 12% profits increase

Published: 23 July, 2008

Tesco's profits rose by nearly 12% in the year to 23 February 2008, the company announced this morning.

Group sales increased by 11.1% to 51.8bn, while underlying pre-tax profit was up by 11.8% to 2.85bn.

Tesco said it had also made a good start to the new financial year, with group sales so far up by 13% and a 4% rise in like-for-like sales in the UK (excluding petrol).

International sales were up by 25%, with 50% of growth coming from overseas.

The company said its Fresh & Easy venture in the USA had been well received by customers and was growing strongly. But it said it would not be separating out the results for Fresh & Easy until September's interim results announcement.

Tesco said core UK sales were up by 6.7% and trading profit up 7.1% (excluding losses from Tesco Direct and Fresh & Easy).

Online sales rose by 31%, while online profits were up by nearly 50% (excluding losses from Direct).

Terry Leahy, chief executive, said: "The breadth of the group and the strength of our business model have enabled Tesco to deliver another year of double-digit sales, profit and earnings per share growth - in challenging market conditions.

"We begin the new financial year confidently - with a good start in the UK, excellent progress in our established international markets and promising early performance from our investments in future growth, particularly in the United States, China and Turkey."

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