Tesco returns to profit as turnaround gathers paceComments Off on Tesco returns to profit as turnaround gathers pace
Tesco’s long-awaited recovery has started to look like reality, as the supermarket giant revealed it has returned to profit.
The grocer posted a pre-tax profit of £162 million for the year to February 27, from a £6.3 billion loss for 2015 when it was dragged down by property writedowns.
It also recorded like for like sales growth of 0.9% in the fourth quarter, compared to a 1.5% decline in the previous quarter.
The retailer noted growth in all regions, including the UK and Ireland, and said its Tesco Mobile division had performed well as did Tesco Bank.
The update comes after boss Dave Lewis took the helm of Tesco in 2014 to revive the flagging chain.
Lewis said: “We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices. Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.”
Phil Dorrell, a partner at consultancy Retail Remedy welcomed the preliminary results: “Lewis has made great strides in getting Tesco closer to its roots, being a good retailer.”