Tesco profits rebound to £1.6bn

Tesco has reported its results for the year, showing a strong rebound for its profits, which have now reached £1.6bn.

The rise of 24.8 per cent represents the group’s ninth consecutive quarter of growth, with like for like sales up 2.2 per cent, as boss Dave Lewis leads the turnaround.

Tesco had also trimmed net debt by nearly 30 per cent or £1.3b during the year to £2.6b.

Chief executive, Dave Lewis described the results as a year of strong progress, saying: "We have further improved profitability, with group operating margin reaching 3 per cent in the second half. We are generating significant levels of cash and net debt is down by almost £6b over the last three years. All of this puts us firmly on track to deliver our medium-term ambitions and create long-term value for every stakeholder in Tesco."

The retailer completed its £3.7bn acquisition of Booker last month and said that its integration with the wholesaler was "well under way". 

The company also identified a £2.5bn revenue growth "opportunity" from the tie-up and expects synergies of £60m within the first year. These would grow to around £140m by the second year and reach £200 each year by the end of the third year, though it dampened analyst expectations of more savings.

About Robert Hutchins

Robert Hutchins is the editor of Licensing.biz and ToyNews. Hutchins has worked his way up from Staff Writer to the position of Editor across the two titles, having spent almost eight years with both ToyNews and Licensing.biz, and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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