Woman sits under a logo of Tesco supermarket in Budapest, Hungary February 29, 2016. REUTERS/Laszlo Balogh
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LONDON, April 13 (Reuters) – Tesco (TSCO.L), Britain’s largest retailer, warned its current-year profit would fall due to difficult economic conditions and pressure on consumers after it announced a 2021-22 forecast Increase of 35.8% had been reported year.
The group, which has over 27% of the UK grocery market, announced on Wednesday that it had adjusted retail operating profit of £2.65 billion ($3.45 billion) for the year ended February 26 has – in line with the forecast of just over £2.6bn and £1.96bn in 2020-21.
Adjusted retail operating profit is forecast to be between £2.4bn and £2.6bn in 2022-23.
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“Given the significant uncertainties in the external environment, we believe it is appropriate to provide earnings guidance in the form of a broader range than usual,” Tesco said.
Inflation rose to 7% in March, official figures showed on Wednesday. Continue reading
Tesco said three factors were likely to affect its performance – the return to more normal customer behavior in the wake of the COVID-19 pandemic, the magnitude of cost inflation and its ability to partially offset it with more savings, and the investments it will take to make it happen maintain its price position relative to the market.
Tesco said the group’s total sales rose 3.0% to £54.8 billion in 2021-22.
The group has so far returned £300m to shareholders via a share buyback program and has committed to a further £750m by April 2023.
($1 = 0.7681 pounds)
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Reporting by James Davey; Editing by Kate Holton
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