Tesco has returned to the black with a £162 million pre-tax profit and like-for-like sales growth of 0.9 per cent in the fourth quarter.
The retailer, which last year posted a loss of £6.3 billion, said the sale of South Korean business Homeplus, as well as improving “customer, colleague and supplier measures”, have contributed to the turnaround.
It said its £400m initial cost-saving programmed had delivered, and has recorded positive and improving like-for-like sales in all regions including the UK, Ireland, Europe and Asia.
Chief executive Dave Lewis said the company has made “significant progress”. “We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices,” he said. “Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case.”
“More customers are buying more things more often at Tesco,” he added.
“As a team, we are committed to serving shoppers a little better every day, in what remains a challenging, deflationary and uncertain market. We are confident that the investments we are making are leading to sustainable improvements for customers whilst creating long-term value for our shareholders.”
Representative at finance website money.co.uk, Martin Lane, said: 'After a disastrous year, the leader of the pack is finally rewarded for drastically shaking up their business model. Not only have Tesco reduced store numbers and cut back on stores opening for 24 hours, they have also followed in the footsteps of Lidl and Aldi by reducing the number of different products they offer.'
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