ifc1 TESCO PLC
TESCO PLC ifc1
REPUBLIC OF IRELAND
979 STORES , EMPLOYS 260,000
Our world-class team of people is building a world-class business by working harder to deliver great value for customers, in every store, in every country, every day.
CHAIRMAN ’ S STATEMENT
GROUP SALES GROUP PROFIT BEFORE TAX †
UP UP UP UP
4 6 8 10
AT A GLANCE UK EUROPE ASIA
EARNINGS PER SHARE † (adjusted diluted) DIVIDEND PER SHARE
12.7% 14.1% 13.9% 12.4%
WHY WE ARE N O 1
CHIEF EXECUTIVE ’ S REVIEW
ONE TEAM CATERING FOR ALL TASTES
ONE - STOP SHOP UNDERSTANDING LOCAL CUSTOMERS
(including value added tax) (£m)
Proﬁt on ordinary activities before tax † (£m)
INVESTING AND INNOVATING
Earnings per share † (adjusted
24 26 28
FIRST FOR FINANCE
Dividend per share
E -@ SY SHOPPING SUPPORTING OUR LOCAL COMMUNITIES
Group enterprise value
(market capitalisation plus net debt) (£m)
THE DIRECTORS AND THE ACCOUNTS
Excluding net loss on disposal of ﬁxed assets and goodwill amortisation. Restated due to the adoption of Financial Reporting Standard (FRS) 19, ‘Deferred Tax’.
BOARD OF DIRECTORS SUMMARY DIRECTORS ’ REPORT
SUMMARY FINANCIAL STATEMENT
This year marks the arrival of Tesco as an International Group with market leading positions in six of our ten countries and 65,000 staff overseas. Our success is underpinned by the strength of our core UK business, and growth in all parts of our strategy which moves UK proﬁt growth of 10.3% to a Group proﬁt growth of 14.1%. We continue to deliver great value for customers in every community in which we operate.
Following excellent results last year the Tesco Group has achieved another year of outstanding organic growth. Group sales have risen by 12.7% to £25.7bn and underlying pre-tax proﬁts are up by 14.1% to £1.2bn, with adjusted diluted earnings per share increasing 13.9% to 12.14 pence, the highest growth for the last ten years. DIVIDEND The board has recommended a ﬁnal dividend of 3.93 pence. This, together with the interim dividend of 1.67 pence, gives a total for the year of 5.60 pence up 12.4% and a dividend cover of 2.17 times. P E R F O R M A N C E These results reﬂect the outstanding performance from all aspects of the Tesco strategy, the core UK business, non-food, retailing services and international, all of which have contributed to growing Group proﬁts. Our organic growth momentum continues to be driven by our determination to deliver for customers wherever we operate. We are now proﬁtable in seven of our nine overseas businesses. Our strategy of being in developing markets is clearly working and we are well
positioned to become the leading retailer in Central Europe and South East Asia. We are delighted with the progress that retailing services has made this year. Tesco Personal Finance has increased its proﬁt sevenfold on last year. Tesco.com now operates successfully in four countries. None of these achievements would have been possible without the considerable effort of the entire Tesco team. Worldwide we employ 260,000 people, 65,000 of whom are overseas. We will create a further 21,000 jobs in the coming year. Our people share in our success and it is my pleasure to thank everyone in the Group for all they have done. The effort and capability of the entire Tesco team has driven this...