Tesco Ireland boss hails 'significant progress' as revenue hits €2.48bn
Tesco Ireland has reported like-for-like sales up 0.1pc and revenues of €2.48bn in the year to February 25.
The parent Tesco Group in the UK beat forecasts for its annual profit as its recovery gained pace, potentially strengthening the hand of boss Dave Lewis as he tries to win investor backing for his plan to buy wholesaler Booker. The supermarket group said its overall turnaround was ahead of schedule - citing a 30pc rise in its key profit measure, a first annual increase in underlying sales in its core UK business for seven years and a 27pc reduction in net debt. It also reiterated margin and cost savings targets.
It wasn't enough to lift shares however, which fell more than 5pc in the wake of the results.
In Ireland, Tesco has slipped into third place in the grocery segment, behind SuperValu and Dunnes Stores.
Tesco Ireland said yesterday that it continues to experience strong volume growth including in what it called "core fresh categories" of fruit, vegetables, meat and bakery. "We have seen significant progress over the last 12 months and since we launched our purpose 'serving Ireland's shoppers a little better every day'.
"We traded well over key seasons and we continue to see strong growth in Tesco own label lines with sales increasing for the full year," Andrew Yaxley CEO Tesco Ireland said. At group level, Tesco said its turnaround was ahead of schedule, but analysts also highlighted a tougher UK consumer outlook, including price rises linked to Brexit. Group sales rose 4.3pc to £49.9bn, while net debt was cut to £3.73bn. (Additional reporting Reuters)