|
On a continuing operations basis |
2018/19* |
2017/18 |
|
Change at constant rates |
Change at |
|
Headline measures1: |
|
|
|
|
|
|
Group sales2 |
£56.9bn |
£51.0bn3 |
|
11.3% |
11.5% |
|
Group operating profit4 |
£2,206m |
£1,646m3 |
|
33.5% |
34.0% |
|
Diluted EPS before exceptional and other items5 |
15.40p |
11.90p |
|
|
29.4% |
|
Dividend per share |
5.77p |
3.00p |
|
|
92.3% |
|
Retail operating cash flow6 |
£2,502m |
£2,773m |
|
|
(9.8)% |
|
Net debt6,7 |
£(2,863)m |
£(2,625)m |
|
|
up (9.1)% |
|
Statutory measures: |
|||||
|
Revenue |
£63.9bn |
£57.5bn |
|
11.0% |
11.2% |
|
Operating profit |
£2,153m |
£1,839m |
|
16.7% |
17.1% |
|
Profit before tax |
£1,674m |
£1,300m |
|
28.3% |
28.8% |
|
Diluted EPS |
13.55p |
12.11p |
|
|
11.9%
|
*Note: Booker consolidated from completion date of 5 March 2018 and therefore included in the 2018/19 figures for 51 weeks
Headlines
· Group sales2 £56.9bn, +11.5%
– UK & ROI LFL sales8 +2.9% incl. Tesco UK +1.7% and Booker +11.1%
– Central Europe LFL sales8 (2.3)%: fewer trading days and less general merchandise
– Asia LFL sales8 (6.2)%: improvement to (3.0)% in 4Q
· Group operating profit4 £2,206m,+34.0%
– UK & ROI £1,537m, +45.1%; incl. £196m Booker (last year: £185m9) and £79m synergies
– Central Europe £186m, +56.3%: significant cost reductions and improved profit mix
– Asia £286m, (4.3)%: supplier negotiations concluded and significant restructuring complete
– Bank £197m, +16.6%: strong banking performance and one-off contract renewal benefit10
· Group operating margin4 3.45%; 2H operating margin4 3.96% (3.79% excl. Booker)
· Retail operating cash flow6 £2.5bn: c.£(490)m working capital timing impact year-on-year
· Retail free cashflow of £906m: impacted y-o-y by working capital timing, higher tax and market purchases of shares
· Net debt6,7 £(2.9)bn: increased by £(238)m after £(766)m Booker cash consideration
· Final dividend 4.10p, giving FY dividend of 5.77p – now expect to reach c.2.0x EPS cover11 in 2019/20
· Statutory revenue +11.2% to £63.9bn; operating profit +17.1% to £2,153m; profit before tax +28.8% to £1,674m
Further progress against each of our six strategic drivers
· Brand health12 continues to strengthen; quality perception +1.9 points and value perception +1.3 points13
· In-year cost savings £532m; savings of £1.4bn to date towards £1.5bn target
· Generated £2.5bn retail operating cash6; £8.6bn retail operating cash14 generated over three years
· Improving the mix across geographies, channels and product; closure of Tesco Direct; less general merchandise in CE
· Released a further £285m value15 from property; three store buybacks in Cirencester, Stroud and Shepton Mallet
· Innovations including 10,000 own brand product relaunch; eight new 'Exclusively at Tesco' brands; launch of Jack's·
Dave Lewis, Chief Executive:
“After four years we have met or are about to meet the vast majority of our turnaround goals. I'm very confident that we will complete the journey in 2019/20.
I'm delighted with the broad-based improvement across the business. We have restored our competitiveness for customers – including through the introduction of 'Exclusively at Tesco' – and rebuilt a sustainable base of profitability. The full year margin of 3.45% represents clear progress and the second half level of 3.79%, even before the benefit of Booker, puts us comfortably in the aspirational range we set four years ago.
I'm pleased that we are able to accelerate the recovery in the dividend as a result of our continued capital discipline and strong improvement in cash profitability.”