Company Growth

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How has Tesco profit grown over the last 6 years?

Since 1992, Tesco has undergone considerable growth and has seen its market share in the UK rise from 10.4% to 15.2%. This in turn has led to increases in both turnover and profit. The changes in the company's financial fortunes are shown below:

Year
Turnover (£m)Group operating profit (£m)Market share
1992-37,58149610.4%
1993-48,60052110.7%
1994-510,10161712.0%
1995-612,09472413.7%
1996-713,88777414.5%
1997-817,40081715.2%
% change 1992-3 to 1997-8+130%+70%+50%
Group turnover and operating profit 1992-98

The improvement in group turnover and operating profit is also reflected in the rise in the Tesco share earnings and dividend, as shown below:

Year
Earnings per share (p)*Dividends per share (p)**
1992-318.37.10
1993-418.87.75
1994-520.18.60
1995-621.99.60
1996-723.510.35
1997-826.611.60
% change 1992-3 to 1997-8+45.3%63.4%
Share earnings and dividends 1992-98
*
Earnings per share is the profits divided by the number of shares **Dividends per share is the profit distributed to shareholders divided by the number of shares Index | Previous Question | Next Question

© 1996-2000 Biz/ed
What are Tesco Key Financial Ratios?
The following figures refer to the 1997-98 financial year.
Operating Margin
Operating margin in UK - 5.9%
Operating margin in Northern Ireland and Republic of Ireland - 4.8% Total Group margin - 5.5%
Productivity
Turnover per employee - £146,404
Profit per employee - £8,660
Weekly sales per sq foot - £21.12
(based on retail area of stores, excluding lobby, restaurant and non-sales areas) Share capital returns
Return on shareholder's funds - 21.4%
Return on capital employed - 18.4%
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