Tesco returns to profit after a difficult period

The UK firm has been through some tough years...

Tesco returns to profit after a difficult period

Tesco Clearwater in Finglas, Dublin | Image: RollingNews.ie

Supermarket giant, Tesco’s sales performance across its near 150 store network here in Ireland turned positive in the three-month period to the end of February, the first quarter of sales growth since 2012.

Overall though the group’s like-for-like sales fell by 1.9% over the year to February compared with the prior year.

The figures have emerged in Tesco Group’s annual financial results which confirm the group generated pre-tax profits of £162m in the past year compared to losses of £6.3bn the previous year when it was beset by a controversy surrounding accounting irregularities, a number of successive profit warnings and senior executive departures.

Trading across the growth was modestly higher; group turnover was effectively flat at £48.5bn while operating profits rose by just over 1% to £944m.

The group’s debts have fallen by £6.2bn following the sales of significant businesses overseas and the closure of its Head Office and stores in the UK.

Chief executive Dave Lewis commented on the results, "We have made significant progress against the priorities we set out in October 2014.

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