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    TSCO   GB00BLGZ9862


Delayed Quote. Delayed London Stock Exchange - 11/26 11:39:31 am
278.9 GBX   -0.52%
11/26Britain on track for record Black Friday sales
11/26Lidl GB boss Christian Härtnagel promoted to Germany role
11/26Lidl GB boss Christian Härtnagel promoted to Germany role
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

New Tesco boss sticks with strategy despite profit slide

10/07/2020 | 05:45am EST
Vehicles are pictured outside a Tesco supermarket in Hatfield

LONDON (Reuters) - The new boss of Tesco, Britain's biggest retailer by sales, backed the strategy of his predecessor on Wednesday, despite a drop in first-half core profit as COVID-19 costs and losses at Tesco bank outweighed a surge in sales.

Ken Murphy, formerly at healthcare group Walgreens Boots Alliance, succeeded Dave Lewis on Oct. 1.

"I think you can take it that I'm really happy with the strategy and direction of the company, unless you actually see it changing in the stores," he told reporters.

"My job is to maintain momentum in the business and keep us focused on delivering a brilliant Christmas," he said.

Murphy said it was too early to talk about longer term strategic opportunities. But he said he had no plans to exit any more overseas markets or sell Tesco Bank, which swung to a first half loss as it braces for a surge in virus-related bad debts.

In his six years at the helm, Lewis put Tesco back on track after an accounting scandal and refocused the group on its home market.

Tesco still faces major challenges, most notably the economic impact of the pandemic and potential disruption when Britain's Brexit transition period finishes at the end of 2020.

Shares in Tesco, which has a 27% share of Britain's grocery market, went sideways during Lewis' tenure and last week the group briefly lost its position as Britain's most valuable food retailer to online specialist Ocado.

The stock was up 2.2% at 0855 GMT, paring 2020 losses to 14.3% after the group forecast that retail operating profit in the full 2020-21 year would be at least the same level as 2019-20 - a slight upgrade from its June forecast.

Tesco made group operating profit before one-off items of 1.04 billion pounds ($1.34 billion) in the 26 weeks to Aug. 29, down from 1.23 billion pounds in the same period last year. Retail operating profit rose 4.4%.

UK like-for-like sales jumped 7.6% as shoppers continued to eat more at home due to coronavirus-related restrictions on socialising, having been up 8.7% in the first quarter.

However, the cost of coping with the pandemic - including extra staff - amounted to 533 million pounds.

Tesco Bank made a loss of 155 million pounds, driven by a provision for potential bad debts and reduced income. A loss of 175-200 million pounds is still expected for the full year.

The 8.2 billion pound sale of Tesco's Thailand and Malaysia businesses, agreed in March, is expected to complete in the second half, allowing Tesco to return 5 billion pounds to shareholders via a special dividend.

Tesco also named Tate & Lyle's Imran Nawaz as its new finance chief. He will succeed Alan Stewart who retires in April.

An interim dividend of 3.2 pence is being paid.

($1 = 0.7756 pounds)

(Reporting by James Davey, editing by Paul Sandle and Mark Potter)

By James Davey

ę Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRITISH POUND (EUR/GBP) -0.03% 0.84855 Delayed Quote.-5.75%
TATE & LYLE PLC -1.35% 643.2 Delayed Quote.-4.63%
TESCO PLC -0.52% 278.9 Delayed Quote.20.64%
WALGREENS BOOTS ALLIANCE, INC. -1.54% 45.9 Delayed Quote.15.10%
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Analyst Recommendations on TESCO PLC
More recommendations
Sales 2022 60 379 M 80 533 M 80 533 M
Net income 2022 1 413 M 1 885 M 1 885 M
Net Debt 2022 11 194 M 14 930 M 14 930 M
P/E ratio 2022 14,5x
Yield 2022 3,65%
Capitalization 21 301 M 28 368 M 28 412 M
EV / Sales 2022 0,54x
EV / Sales 2023 0,52x
Nbr of Employees 360 000
Free-Float 97,9%
Duration : Period :
Tesco PLC Technical Analysis Chart | MarketScreener
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Technical analysis trends TESCO PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 19
Last Close Price 279,15 GBX
Average target price 306,25 GBX
Spread / Average Target 9,71%
EPS Revisions
Managers and Directors
Ken Murphy Group Chief Executive Officer & Director
Imran Nawaz Chief Financial Officer & Director
John Murray Allan Non-Executive Chairman
Guus Dekkers Chief Technology Officer
Byron Elmer Grote Senior Independent Non-Executive Director
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