Just after the retailer announced that it would put an end to thousands of job in a re-organizational program, the news came that the Chief Executive of Tesco said he is very confident after the announcement of retailers regarding the rise in pre-tax profit by 28.8% for the year.
At the supermarket chain, the revenue rose by 11.2 percent and the sales in the UK boosted by 1.7 percent in the year 2018 to 2019.
Chief Executive of Tesco, Dave Lewis stated: “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.”
He further added, “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.”
Earlier this year, Tesco made an announcement that in a restructuring of its store around 9,000 jobs will be disturbed by the consequences.
If you take a look at the profits of Tesco since the past 5 years, despite having lost around 1% of the market, its profits have still boosted and there is an improvement in the rate of growth.
Equity research analyst, Amisha Chohan stated: “The probability of the Asda and Sainsbury’s merger has dramatically reduced, which we believe is partially deemed as positive for Tesco. However, remember that the biggest threat to the large supermarkets is the discounters, such as Aldi and Lidl.”
There has been a ‘clear progress’ in the annual profit margin of around 3.45% in the supermarket.
11.5% increase took place in the group sales and the company declared a 5.77 pence per share of dividend which was up by 92 percent.