Tesco (TSCO)

Sector:

Food Pharmacy Retail

Index:

FTSE 100

296.60p
   
  • Change Today:
    -1.60p
  • 52 Week High: 303.50
  • 52 Week Low: 245.40
  • Currency: UK Pounds
  • Shares Issued: 7,039m
  • Volume: 13,716,395
  • Market Cap: £20,878m
  • RiskGrade: 107

Tesco annual profits jump but warns of tougher outlook this year

By Frank Prenesti

Date: Wednesday 13 Apr 2022

LONDON (ShareCast) - (Sharecast News) - UK retailer Tesco posted a sharp rise in annual profits on Wednesday, but warned that current-year earnings could fall as inflationary pressures start to hit consumers.
The company said adjusted operating profit rose 35.8% to £2.65bn in the year to February 26. On a pre-tax basis they were up 219% to £2bn. Total group sales rose 3% to £54.8bn.

Tesco forecast 2022-23 adjusted operating profit of £2.4bn - £2.6bn, which it said would be affected by the extent of further normalisation in customer behaviour as the economy emerged from the Covid pandemic, cost inflation and investment needs to stay competitive on price. Shares in the company fell 5% in early trade.

The results came on the day that UK inflation hit a 30-year high of 7% in March and just after a pledge-breaking tax rise by the government took effect on top of a 54% rise in energy prices as Britons face the biggest decline in living standrads since records began.

Inflationary pressures have intensified with Russia's unprovoked invasion and assault on Ukraine, hitting fuel costs and supplies of vital food staples such as wheat.

"Clearly, the external environment has become more challenging in recent months," said Tesco chief executive Ken Murphy.

"Against a tough backdrop for our customers and with household budgets under pressure, we are laser-focused on keeping the cost of the weekly shop in check."

"Given the significant uncertainties in the external environment, we believe it is appropriate to provide profit guidance in the form of a wider than usual range."

AJ Bell analyst Danni Hewson said the coming months would be challenging for the supermarket chain as it faced inflation and a potential shift in how consumers spend their money.

"There is a real risk that cash-strapped families will cut back on their shopping. Even though we all need to eat and drink, there is a high chance that shopping baskets may not contain as many treats as households have been consuming of late. If everyone cuts back on a few items each week, this loss of income for Tesco will certainly add up."

"If this trend does play out as expected, it won't just be Tesco feeling the pain. On a two-year basis, Asda, Morrisons, Sainsbury's and Co-op have all lost market share and these businesses will certainly not want to see further bad news in the form of customers tightening their belts."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Tesco Market Data

Currency UK Pounds
Share Price 296.60p
Change Today -1.60p
% Change -0.54 %
52 Week High 303.50
52 Week Low 245.40
Volume 13,716,395
Shares Issued 7,039m
Market Cap £20,878m
RiskGrade 107

Tesco Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
47.22% above the market average47.22% above the market average47.22% above the market average47.22% above the market average47.22% above the market average
69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average69.23% above the sector average
Price Trend
67.20% above the market average67.20% above the market average67.20% above the market average67.20% above the market average67.20% above the market average
38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average38.46% above the sector average
Income
24.59% above the market average24.59% above the market average24.59% above the market average24.59% above the market average24.59% above the market average
33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average33.33% above the sector average
Growth
20.77% below the market average20.77% below the market average20.77% below the market average20.77% below the market average20.77% below the market average
23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average23.08% above the sector average

What The Brokers Say

Strong Buy 4
Buy 7
Neutral 2
Sell 0
Strong Sell 0
Total 13
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Tesco Dividends

  Latest Previous
  Interim Final
Ex-Div 12-Oct-23 11-May-23
Paid 24-Nov-23 23-Jun-23
Amount 3.85p 7.05p

Trades for 28-Mar-2024

Time Volume / Share Price
17:19 12,578 @ 297.90p
17:19 11,378 @ 297.76p
16:35 8,325 @ 296.60p
16:35 22,969 @ 296.60p
16:35 9,884,236 @ 296.60p

Tesco Key Personnel

CEO Ken Murphy
CFO Imran Nawaz
Chair Gerard Murphy

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