Tesco's €260m profit from Irish sales
Published 21/04/2010 | 05:00
Tesco's Irish arm is likely to have posted a profit in the region of €260m in the last financial year, as its revenue for the 12 months to the end of February slipped 7.5pc to just under €2.9bn.
The sales figure was released by the Irish division yesterday as the wider Tesco group, the world's fourth largest retailer, posted a 10.1pc rise in underlying pre-tax profit to £3.39bn (€3.87bn) for the last financial year. Its group revenue, excluding VAT, was 7.1pc higher at £56.9bn (€65bn).
Its profit in Ireland, while not disclosed by the group, is based on the roughly 9pc profit margin the retailer is thought to enjoy here.
Despite the hike in overall earnings, shares in the retailer closed down 1.1pc in London as its international earnings fell slightly short of analysts' anticipated targets.
Chief executive Terry Leahy said Tesco had "weathered the economic storm well" and claimed the retail giant's business was stronger than before the recession.
Its group trading margin rose 25 basis points to 5.9pc.
Tesco said it was laying the foundation for long-term growth in China. The retailer plans to spend £2.5bn (€2.85bn) opening stores in China this year.
Despite its fall in revenue, Tesco recorded 9.9pc transaction growth in Ireland and 15pc volume growth. Own label products now account for 35pc of Tesco Ireland's total sales, up from 32.5pc a year ago.
"The market has steadied but uncertainty around consumer confidence and spending persists," said Tesco Ireland chief executive Tony Keohane.