Interim Results 2024/25
strong
customer offer
delivers volume growth and market share
gains.
|
|
|
|
|
|
|
Performance highlights (on a
continuing operations basis)1,2
|
H1 24/25
|
H1 23/24
|
Change at actual
rates
|
Change at constant
rates
|
|
|
Group sales (exc. VAT, exc.
fuel)3
|
£31,463m
|
£30,401m
|
3.5%
|
4.0%
|
|
|
Adjusted operating
profit4
|
£1,649m
|
£1,426m
|
15.6%
|
15.8%
|
|
|
- Retail
|
£1,555m
|
£1,417m
|
9.7%
|
10.0%
|
|
|
- Tesco Bank*, 1
|
£94m
|
£9m
|
n/m9
|
n/m
|
|
|
Retail free cash
flow5
|
£1,261m
|
£1,368m
|
(7.8)%
|
|
|
|
Net debt5,6
|
£(9,676)m
|
£(9,888)m
|
2.1%
|
|
|
|
Adjusted diluted
EPS4
|
14.45p
|
11.68p
|
23.7%
|
|
|
|
Interim dividend per
share6
|
4.25p
|
3.85p
|
10.4%
|
|
|
|
Statutory measures (on a
continuing operations basis)1
|
|
|
|
|
|
Revenue (exc. VAT, inc.
fuel)
|
£34,773m
|
£33,801m
|
2.9%
|
|
|
|
Operating profit
|
£1,612m
|
£1,426m
|
13.0%
|
|
|
|
Profit before tax
|
£1,392m
|
£1,161m
|
19.9%
|
|
|
|
Retail cash generated from
operating activities
|
£1,943m
|
£2,068m
|
(6.0)%
|
|
|
|
Diluted EPS
|
14.62p
|
12.25p
|
19.3%
|
|
|
|
Statutory measures (including
discontinued operations)1
|
|
|
|
|
|
Revenue (exc. VAT, inc.
fuel)
|
£35,180m
|
£34,149m
|
3.1%
|
|
|
|
Profit after tax
|
£1,051m
|
£929m
|
13.1%
|
|
|
|
Diluted EPS
|
15.03p
|
12.83p
|
17.1%
|
|
|
Ken Murphy, Chief Executive
"We've been working really hard to
offer our customers the best possible value, quality, and service
and they are shopping more at Tesco as a result. We have
lowered prices on thousands of lines, launched or improved over 860
products in partnership with our suppliers and growers, and our
customer satisfaction scores continue to improve across a broad
range of measures.
The combination of price, quality
and innovation means we are as competitive as we have ever been,
and we have been the cheapest full-line grocer for nearly two
years. Our strong UK and ROI market share gains across the
last year demonstrate our continued momentum. I want to say a
big thank you to all my Tesco colleagues for their hard work
serving customers so well. As we approach the Christmas
season, we
are looking forward to sharing the quality of our festive food with
customers, and can't wait for them to taste it.
We are in good shape, with volume
growth delivering strong financial performance. This builds
on our track record of delivery for all our stakeholders. Our
strong momentum allows us to continue to focus on value, quality,
innovation, and the broader customer experience, whilst investing
in growth opportunities in a disciplined, returns-focused
way."
Volume-driven growth
delivering strong financial performance and cash
returns:
|
•
|
Improved customer satisfaction
driving strong market share gains in UK +62bps, with ROI
+88bps
|
|
•
|
Volume-driven sales growth, with
Retail LFL7 sales up 2.9%; growth across UK +4.0%, ROI
+4.7% and CE +0.6%
|
|
•
|
Booker LFL sales down (1.9)%,
reflecting a decline in the tobacco market and Best Food Logistics
volumes
|
|
•
|
Retail adjusted operating
profit4 up 10.0% at constant rates to £1,555m with
progress in both UK & ROI and Central Europe; statutory
operating profit1 £1,612m, up 13.0%
|
|
•
|
Tesco Bank adjusted operating
profit from continuing operations of £94m includes £42m of
non-recurring benefits, mainly due to upfront income recognition
from a new five-year pet insurance agreement
|
|
•
|
Adjusted diluted EPS1,4
up 23.7% to 14.45p, driven by higher adjusted operating profit,
lower net finance costs and the benefit of our ongoing share
buyback programme; statutory diluted EPS on a continuing operations
basis up 19.3% to 14.62p
|
|
•
|
Continued strong retail free cash
flow5 of £1,261m in the first half compared to £1,368m
in the first half of last year, reflecting a lower benefit from
working capital and higher tax paid; net debt5,6 down
2.1% to £(9,676)m
|
* Comparatives have
been re-presented to disclose banking operations as a discontinued
operation. Total Tesco Bank adjusted operating profit including
discontinued operations was £188m1. Tesco Bank results
included in the table above and within the segmental review of
performance refer only to the retained Tesco Bank business, i.e.
insurance and money services, unless otherwise stated.
Further footnotes can be found on page 4.
Improving customer satisfaction through relentless focus on
quality, service and price:
|
•
|
Continued net switching gains for
19 consecutive four-week periods in the UK and 22 in ROI
|
|
•
|
Powerful value combination of Aldi
Price Match on >700 lines, Low Everyday Prices on >1,000
lines and >8,000 Clubcard Prices deals each week, meaning we
have now been the cheapest full-line grocer since November
2022
|
|
•
|
Additional hours invested in
stores, the equivalent of more than 2,000 extra colleague roles
year-on-year, helping us deliver market-leading
availability
|
|
•
|
Investing in product quality,
innovation and sustainability, launching 282 new products and
improving 580
|
|
•
|
#1 position in the Advantage
supplier survey for ninth year in a row
|
|
•
|
Winner at the Grocer Gold Awards
2024 with accolades including Finest being named 'Own Label Range
of the Year' and Tesco winning 'Grocer 33 Price Award' and, for the
10th year running, 'Britain's Favourite Supermarket'
|
Further progress in high-returning future growth and digital
capability:
|
•
|
Clubcard sales penetration up in
all markets year-on-year: UK 82%, ROI 85%, Central Europe 87%;
further personalisation, with 4.9m customers receiving 'Clubcard
Challenges' tailored to their shopping habits
|
|
•
|
Expanding retail media channel via
the Tesco Media and Insight Platform; growth in active advertisers,
campaigns per advertiser and spend per campaign
|
|
•
|
On track to open new chilled
distribution centre in Aylesford in Summer 2025, leveraging robotic
automation to streamline operations, improve efficiency and support
our commitment to deliver a seamless shopping experience for
customers
|
|
•
|
Investing in capital-light Booker
catering capacity: new catering hubs in Eccles, Charlton and
Enfield allow us to better service growing demand for
delivery
|
|
•
|
ROI 'fresh first' refresh
programme and product innovation driving market outperformance and
share gains
|
Investing further for colleagues, communities, and the
planet:
|
•
|
Largest ever increase in store
colleague pay and improved parental and wellbeing offerings,
culminating in standout colleague satisfaction results and winning
'Employer of the Year (Retailer)' at the Grocer Gold Awards
2024
|
|
•
|
Continuation of Stronger Starts,
our grant programme to help children have a stronger start in life
through healthy food and physical activities, awarding funding of
more than £9m to date to over 8,000 projects
|
|
•
|
Further support for communities,
donating c.2.5m meals per month; in the half reaching 220m meals
donated since the start of our partnership with FareShare; food
donation bags rolled out across all large stores
|
|
•
|
Progress towards ambitious climate
change targets; announcing a further renewable energy Power
Purchase Agreement (PPA) in Scotland, contributing to our target to
source 60% of electricity demand via PPA or onsite generation by
2030
|
CAPITAL RETURN PROGRAMME.
|
•
|
Share buyback programme remains a
critical driver of shareholder returns, reflecting strength of our
balance sheet and confidence in delivering strong future cash
flows
|
|
•
|
In April, announced commitment to
buy back £1bn worth of shares over the following twelve months,
including £250m funded by the special dividend paid by Tesco Bank
in August 2023
|
|
•
|
£575m worth of shares purchased in
first half; on track to complete the £1bn buyback by April
2025
|
|
•
|
£2.4bn worth of shares purchased
since launch of capital return programme in October 2021
|
|
•
|
Sale of banking operations due to
complete before end of calendar year; intention remains to return
majority of proceeds via incremental share buyback following
completion
|
OUTLOOK.
The significant investments we are
making in value, quality and service across the Group have
delivered volume growth ahead of our expectations in the first
half. Due to this strong performance, we now expect to
deliver around £2.9bn retail adjusted operating profit for the
2024/25 financial year (previously 'at least £2.8bn'). We
continue to expect to generate retail free cash flow within our
medium-term guidance range of £1.4bn to £1.8bn.
We now expect an adjusted
operating profit contribution from the retained Tesco Bank business
of around £120m for the 2024/25 financial year, including the £42m
non-recurring benefit described above. On an ongoing basis,
we continue to expect an adjusted operating profit contribution of
between £80m to £100m per year, including strategic partnership
income from Barclays.
STRATEGIC PRIORITIES.
Our strategic priorities ensure
that we focus on offering great value, quality and convenience
whilst rewarding loyalty. Through our colleagues, our reach and our
supplier relationships, we are well-placed to serve our customers
wherever, whenever and however they need us. Our strategy guides us
to deliver top-line growth, grow profit and generate cash and in
doing so, deliver for all our stakeholders.
1) Magnetic Value for Customers - Re-defining value to become the customer's
favourite
|
•
|
Value front and centre, with
prices cut on over 2,850 products by an average of around 9% in the
UK over the half and Clubcard Prices saving customers up to £385
off their annual grocery bill
|
|
•
|
Overall brand perception in UK
increased by +596bps year-on-year, stepping forward across all
drivers, including impression (+1,058bps), value (+650bps) and
satisfaction (+446bps)
|
|
•
|
Enhancing quality credentials
through taste-led innovation across the range, irrespective of
budget; includes exciting dinner for tonight launches, such as Root
& Soul's modern vegetarian dishes, and Pinch, a new range of
Indian ready meals
|
|
•
|
Finest volumes up +14.9% YoY with
over 20m customers shopping Finest in the half, recognising our
investments in quality; new Finest products include a new Finest
Sourdough range, and we relaunched our Finest Dine In
proposition
|
|
•
|
Winning combination from Booker of
improved availability, further progress in customer satisfaction
scores and great value, with Everyday Low Prices on over 700
catering products held until January 2025
|
|
•
|
In Central Europe, customers continue to respond well to our targeted value
investments, with prices cut on at least 1,500 products in each
market
|
2) I Love my Tesco Clubcard -
Creating a competitive advantage through our powerful digital
capability
|
•
|
Unrivalled Clubcard reach with now
over 23m Clubcard households in the UK; group-wide Tesco app users
at 16.3m with visits to the app up year-on-year
|
|
•
|
Largest and most generous
supermarket Reward Partner scheme, including 'Clubcard Moments'
offers, such as '3 months of Disney+ on us' during the summer, with
11.5m free codes made available to customers via the Tesco
app
|
|
•
|
Dedicated Tesco Media and Insight
Platform team mobilised; partnerships agreed with WPP and Publicis
to leverage our combined expertise and reach across a broader pool
of advertisers
|
|
•
|
Surpassed 4,000 digital in-store
screens; over 7,600 campaigns delivered in the first half, with 91
brands participating in our 'Summer of Sport' event
|
3) Easily the Most Convenient - Serving customers wherever, whenever and however they want
to be served
|
•
|
Opened 44 stores across the Group;
26 in the UK, 7 in ROI and 11 in Central Europe, and refreshed a
further 182
|
|
•
|
AI-powered range curation tool
through partnership with dunnhumby, enabling improved tailoring of
store offer to local shopping habits
|
|
•
|
UK online customer satisfaction up
+11pts YoY and new record number of Delivery Saver subscribers at
727k, up +12% YoY
|
|
•
|
Tesco Whoosh delivering strong
order and basket size growth, with active customers up +19.8% in
the half
|
|
•
|
Launched Tesco Marketplace; now
offering over 150,000 products across categories including garden,
home and pet care
|
|
•
|
Integrated a further 397 net new
Booker retail partners, taking the total outlets to 7,787 across
Premier, Londis, Budgens and Family Shopper
|
4) Save to Invest - Significant opportunities to simplify, become more productive
and reduce costs
|
•
|
On track to deliver £500m
efficiency savings target for the 2024/25 financial year, with a
c.£260m contribution in the half
|
|
•
|
Continued progress across all
areas, including goods & services not for resale, operations,
property and central overheads
|
|
•
|
End-to-end review of stock flow
from suppliers to store, optimising waste performance and improving
availability
|
|
•
|
Simplifying in-store routines,
such as optimising the checkout model whilst minimising queueing
times for customers, and refining replenishment routines
|
|
•
|
Taking further action to reduce
stock loss, including anti-push out technology and additional
security gates
|
GROUP REVIEW OF PERFORMANCE.
On a continuing operations
basis1
The results of our banking operations have been treated as
discontinued following the announcement of our proposed sale to
Barclays. As such, Tesco Bank results included in the table
below and within the segmental review of performance section, refer
only to the retained Tesco Bank business, i.e. insurance and money
services, unless otherwise stated.
|
26 weeks ended 24 August
20242,6
|
H1 24/25
|
H1 23/24
|
Change at
actual
rates
|
Change at constant
rates
|
|
|
Sales (exc. VAT, exc. fuel)3
|
£31,463m
|
£30,401m
|
3.5%
|
4.0%
|
|
|
Fuel
|
£3,310m
|
£3,400m
|
(2.7)%
|
(2.5)%
|
|
|
Revenue (exc. VAT, inc. fuel)
|
£34,773m
|
£33,801m
|
2.9%
|
3.3%
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit4
|
£1,649m
|
£1,426m
|
15.6%
|
15.8%
|
|
|
Adjusting items
|
£(37)m
|
-
|
|
|
|
|
Statutory operating profit
|
£1,612m
|
£1,426m
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
Net finance costs
|
£(218)m
|
£(269)m
|
|
|
|
|
Joint ventures and
associates
|
£(2)m
|
£4m
|
|
|
|
|
Statutory profit before tax
|
£1,392m
|
£1,161m
|
19.9%
|
|
|
|
Taxation
|
£(370)m
|
£(274)m
|
|
|
|
|
Statutory profit after tax
|
£1,022m
|
£887m
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
EPS4
|
14.45p
|
11.68p
|
23.7%
|
|
|
|
Statutory diluted EPS
|
14.62p
|
12.25p
|
19.3%
|
|
|
|
Interim dividend per share6
|
4.25p
|
3.85p
|
10.4%
|
|
|
|
Net debt5,6
|
£(9,676)m
|
£(9,888)m
|
2.1%
|
|
|
|
Retail free cash flow5
|
£1,261m
|
£1,368m
|
(7.8)%
|
|
|
|
Capex8
|
£530m
|
£523m
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Sales3 increased by
4.0% at constant rates, including a strong
contribution from volume growth, driven by
our ongoing investments in value, quality and service. Sales
inflation returned to more normalised levels as cost inflation
headwinds eased. We continued to work with our supplier
partners to lower prices for customers as quickly as
possible. Revenue increased by 3.3% at constant rates,
including a (2.5)% decline in fuel sales.
Adjusted operating
profit4 increased by 15.8% at constant
rates, primarily
driven by our retail operations, where strong volume growth and a c.£260m contribution from Save to
Invest more than offset further investments in the customer offer
and colleague pay. Adjusted
operating profit from the retained Tesco Bank business
was £94m, up from £9m in
the prior year. The
current year includes £42m of
non-recurring items, including the accounting for
upfront commission income on the signing
of a new five-year pet insurance contract. The
prior year included a £(24)m impact from a movement in insurance
reserves. The year-on-year
growth excluding these items
was driven by strong underlying performance in the
insurance business.
Statutory operating profit
improved by 13.0% year-on-year, as the strong adjusted operating
profit performance described above was partially offset by lower
gains on property transactions in the half.
Net finance costs were £51m lower
year-on-year, due to higher interest earned on cash, short-term
deposits and money market funds, and favourable non-cash
mark-to-market movements on certain derivative financial
instruments. The higher tax charge this year was mainly
driven by higher profit and a higher statutory tax rate versus last
year.
Adjusted diluted
EPS4 grew by 23.7%. This
was driven mainly by higher retail adjusted operating profit and
the year-on-year increase in Tesco Bank adjusted operating profit
described above. Our EPS growth also continues to benefit
from a reduction in share count as a result of our ongoing share
buyback programme. We have announced an interim dividend of
4.25 pence per ordinary share, in line with our policy to pay 35%
of the prior full-year dividend.
We generated £1,261m of retail free cash
flow5, including a net £169m working capital inflow.
Net debt5,6 reduced by £88m since February
2024. Strong retail free cash flow generation offset cash
returned to shareholders via dividends and our ongoing share
buyback programme. Lease liabilities
decreased by £79m since February 2024, primarily driven by the
overall reducing nature of our lease liability.
The net debt/EBITDA ratio was 2.1
times at the end of the first half.
Further commentary on these
metrics can be found below and a full income statement can be found
on page 16.
Notes:
1. The
performance of our banking operations has been presented as a
discontinued operation with comparatives also restated. The
retained business (insurance and money services) has been presented
on a continuing operations basis and therefore within headline
performance measures. Further details on discontinued
operations can be found in Note 6, starting on page 29.
2. The Group
has defined and outlined the purpose of its alternative performance
measures, including its performance highlights, in the Glossary
starting on page 43.
3. Group
sales exclude VAT and fuel. Sales change shown on a
comparable days basis for Central Europe.
4. Adjusted
operating profit and adjusted diluted EPS exclude adjusting
items.
5. Net debt
and retail free cash flow exclude Tesco Bank.
6. All
measures apart from net debt and dividend per share are shown on a
continuing operations basis unless otherwise stated. Further
information on net debt can be found in Note 18, starting on page
41.
7.
Like-for-like (LFL) is a measure of growth in group sales from
stores that have been open for at least a year and online sales (at
constant exchange rates, excluding VAT and fuel).
8. Capex
excludes additions arising from business combinations, property
buybacks (typically stores) and other store purchases. Refer
to page 45 for further details.
9. Not
meaningful (n/m)
Segmental review of
performance:
Sales
performance:
(exc. VAT, exc.
Fuel)3,6
|
On a continuing operations
basis1
|
Sales
(£m)
|
LFL sales
change7
|
Total sales change at actual
rates
|
Total sales change at
constant rates
|
|
|
|
|
|
|
|
|
|
-
UK
|
22,845
|
4.0%
|
4.7%
|
4.7%
|
|
|
-
ROI
|
1,449
|
4.7%
|
3.6%
|
5.6%
|
|
|
-
Booker
|
4,623
|
(1.9)%
|
(1.7)%
|
(1.7)%
|
|
|
UK & ROI
|
28,917
|
3.1%
|
3.6%
|
3.7%
|
|
|
Central Europe
|
2,027
|
0.6%
|
(4.2)%
|
0.9%
|
|
|
Retail
|
30,944
|
2.9%
|
3.0%
|
3.5%
|
|
|
Tesco Bank
|
519
|
|
46.6%
|
46.6%
|
|
|
Group sales
|
31,463
|
|
3.5%
|
4.0%
|
|
|
Fuel
|
3,310
|
(2.8)%
|
(2.7)%
|
(2.5)%
|
|
|
Group revenue
|
34,773
|
|
2.9%
|
3.3%
|
|
Further information on sales
performance is included in the appendices starting on
page 50.
Adjusted operating
profit4,6 performance:
|
|
Profit
(£m)
|
|
|
|
|
|
On a continuing operations
basis1
|
Change at actual
rates
|
Change at constant
rates
|
Margin % at actual
rates
|
Margin % change at actual
rates
|
|
|
UK & ROI
|
1,506
|
9.8%
|
10.0%
|
4.7%
|
29
bps
|
|
|
Central Europe
|
49
|
6.5%
|
8.7%
|
2.3%
|
26
bps
|
|
|
Retail
|
1,555
|
9.7%
|
10.0%
|
4.5%
|
30 bps
|
|
|
Tesco Bank
|
94
|
n/m
|
n/m
|
18.1%
|
n/m
|
|
|
Group
|
1,649
|
15.6%
|
15.8%
|
4.7%
|
52 bps
|
|
Further information on operating
profit performance is included in Note 2
starting on page 22.
UK & ROI
OVERVIEW:
In the UK, Republic of Ireland
(ROI) and Booker, like-for-like sales increased by 3.1%.
Volume growth was particularly strong in the UK and ROI, and we
delivered market share and switching gains in every period in the
first half. Sales inflation stabilised at more normalised
levels as inflationary pressures from global commodities continued
to ease. We invested further in lowering prices across
everyday grocery lines and in an even stronger promotional offering
over key seasonal events. The Booker like-for-like sales
decline results from further growth in core retail and catering
being offset by the continued tobacco market decline and weakness
in some areas of the fast-food market serviced by Best Food
Logistics.
UK & ROI adjusted operating
profit was £1,506m, up 10.0% at constant rates, driven by strong retail volume growth and the ongoing
delivery of our Save to Invest programme, which helped to offset
continued operating cost inflation, particularly related to
colleague pay awards.
UK - Growing volumes and market
share through relentless focus on quality, service and
value:
Like-for-like sales grew by 4.0%,
driven by a strong performance across stores and online.
Volume growth was ahead of our expectations, and we grew
consistently ahead of the market.
Overall market share grew by +62bps year-on-year to 27.8%, our
highest market share level since January 2022,
with a particularly strong performance in our
large stores. We have now delivered 15 consecutive four-week
periods of market share gains and 19 consecutive four-week periods
of switching gains. Overall brand perception increased by
+596bps year-on-year, stepping forward
across all drivers, including impression
(+1,058bps), value (+650bps) and satisfaction (+446bps).
Food sales grew by
4.9%, including a particularly strong
volume performance in fresh food, driven by our ongoing investments
in product quality and innovation. We launched 282 new
products, including our Root & Soul range of modern vegetarian
dishes, and improved a further 580, including our Taste Shack and
Finest Dine In ranges. Finest sales continued to grow
particularly strongly, with volumes up 14.9% year-on-year and over
20 million customers shopping Finest in the half.
We have now been the cheapest of
the full-line grocers since November 2022 and we further
strengthened our position in the half. Over 2,850 products
were cheaper at the end of the half than at the start, with an
average reduction of around 9%.
Home and Clothing sales grew by
0.3%, which includes a (1.3)ppts drag from the transition to our
new partnership with The Entertainer. The partnership, which
offers customers an even stronger range of toys in our stores,
means we no longer recognise toy sales, and instead earn commission
income. The transition will complete in the second half of
the year as planned in around 750 UK stores. Excluding this
impact, Home and Clothing sales grew by 1.6%, primarily driven by a
strong clothing performance, where we continue to grow ahead of the
broader store-based clothing market.
Sales grew across both large and
convenience store formats, by 4.2% and 0.5% respectively. In
our large stores, we invested in an even
stronger promotional offer over key seasonal events,
including our 'Summer of Sport'
campaign. We had more colleagues on
the shop floor year-on-year, delivering market-leading availability, and
resulting in a three-year-high net
promoter score. Convenience sales, which include a higher proportion of
food-on-the-go, were impacted by poor weather in the half and the
ongoing decline in the tobacco market.
Online sales grew by 9.3%, driven
primarily by volume growth, including a c.2ppts contribution from
Tesco Whoosh. Overall average orders per week were up 9.3%
year-on-year to 1.3 million and we continued to improve the
proportion of 'perfect orders', leading to a further step-up in
customer satisfaction scores. Online sales participation
increased slightly to 13.5% of total UK sales. Tesco Whoosh,
our rapid delivery service, is now available in 1,460 stores, with average basket
size and average orders per store continuing to grow, and already
high customer satisfaction scores seeing further
improvement.
|
Online performance
|
|
H1 24/25
|
YoY change
|
|
Sales inc. VAT
|
£3.3bn
|
9.3%
|
|
Orders per week
|
|
1.29m
|
9.3%
|
|
Basket size*
|
|
£108
|
4.4%
|
|
Online % of UK total
sales
|
|
13.5%
|
0.6ppts
|
* Excludes Tesco
Whoosh
In June, we introduced Tesco
Marketplace, offering customers an even broader range of products
from our specially selected partners. We are now offering
over 150,000 products across categories including garden, homeware,
pet care and toys, with a strong pipeline of further sellers being
added over the coming months.
ROI - Ongoing volume growth driving strong market share
gains:
Like-for-like sales grew by 4.7%
in the half, driven by our ongoing investments in product quality
and innovation, and our extensive refresh programme, which we
rolled out to a further eleven stores. Total sales grew by
5.6% at constant rates, including a 0.9ppts contribution from new
stores, driven by the opening of four new large stores and three
new Tesco Express stores in the half.
Food sales grew by 5.4%, which
includes a strong contribution from fresh food volume growth as we
continue to invest in product quality and innovation across the
range. These investments culminated in us winning eight gold
medals at the 2024 'Monde Selection Awards'.
Non-food sales declined by (0.8)%,
which includes a (1.4)ppts impact from the transition to our new
partnership with The Entertainer, as in the UK. Excluding
toys, non-food sales grew by 0.6%.
We have now gained market share in
ROI for 31 consecutive four-week periods, taking our share to 23.5%
at the end of the first half, up +88bps year-on-year.
Clubcard sales penetration stepped up by a further 5ppts
year-on-year to 85.3%.
BOOKER - Growth across core
catering and retail following strong performance last
year:
|
|
Sales
£m
|
LFL
|
|
Core retail
|
1,657
|
0.6%
|
|
Core catering*
|
1,350
|
1.7%
|
|
Tobacco
|
888
|
(7.3)%
|
|
Best Food Logistics
|
728
|
(6.6)%
|
|
Total Booker
|
4,623
|
(1.9)%
|
* Includes sales to small
businesses and sales from Venus Wine and Spirit Merchants PLC,
which was acquired in June 2024 and so is excluded from LFL
growth.
Overall like-for-like sales
declined by (1.9)%, reflecting the continuing decline in the
tobacco market and weakness in parts of the fast-food market
serviced by Best Food Logistics, whilst the core retail and
catering businesses continue to deliver growth against a
challenging market backdrop.
Core retail sales increased by
0.6% year-on-year, driven by a further 397 net new retail partners
for our symbol brands (Premier, Londis, Budgens and Family
Shopper). The independent convenience sector is seeing some
trading softness, with some customers switching to larger store
formats. Booker's symbol brands in contrast performed
strongly, with sales up 3.1%, supported by a further improvement in
availability. Our Premier brand was awarded the
'Symbol/Franchise Retailer of the Year' at the Grocer Gold Awards
2024.
Core catering sales increased by
1.7%, primarily driven by stronger volumes, as customers responded
well to an extension of our Everyday Low Prices campaign, with
prices locked on over 700 products until January 2025.
Customer satisfaction levels remained high at c.86%, and
availability improved even further to c.98% in the half.
In June, we acquired
Venus Wine and Spirit Merchants PLC, a
specialist wine and spirits merchant, offering
our on-trade catering customers an even larger selection of
spirits, wines, lagers, ciders and ales. The integration is
progressing well, and we are continuing to expand the customer
base.
CENTRAL EUROPE - Ongoing
improvement in trading trajectory as market challenges start to
ease:
Like-for-like sales grew by 0.6%,
primarily driven by volume growth, reflecting a gradual recovery in
customer sentiment in the region as customers' disposable incomes
started to recover following a period of significant inflationary
pressures. Food sales grew by 0.9% year-on-year, including a
particularly strong performance in fresh food. Customers
responded well to our targeted value investments, including price
cuts on at least 1,500 products in each market.
Non-food sales declined by (1.7)%,
which includes an impact from market-wide availability challenges
in clothing, and wetter weather in the second quarter, which was
partly offset by an increase in the proportion of full price sales
year-on-year.
Central Europe adjusted operating
profit was £49m, an increase of 8.7% year-on-year at constant
rates, primarily driven by volume growth and further progress in
our Save to Invest programme. We continue to expect an
ongoing recovery in adjusted operating profit in the
region.
TESCO BANK:
Our banking operations (credit
cards, loans and savings), which are due to be sold to Barclays
Bank UK PLC, are treated as discontinued operations within these
results. Our headline performance measures include those
business lines which are being retained and are therefore treated
as continuing operations, i.e. insurance, ATMs, travel money and
gift cards.
The breakdown of our overall
performance between continuing and discontinued operations is shown
in the table below.
|
|
H1 24/25
|
H1 23/24
|
YoY change
|
|
Revenue
|
£926m
|
£702m
|
31.9%
|
|
Continuing operations*
|
£519m
|
£354m
|
46.6%
|
|
Discontinued operations
|
£407m
|
£348m
|
17.0%
|
|
Adjusted operating profit
|
£188m
|
£65m
|
189.2%
|
|
Continuing operations*
|
£94m
|
£9m
|
n/m
|
|
Discontinued operations
|
£94m
|
£56m
|
67.9%
|
* Includes revenue of £33m
(H1 23/24: £33m) and net investment income in adjusted operating
profit of £9m (H1 23/24: £3m) associated with banking operations
which will cease following completion of the proposed sale to
Barclays.
Continuing operations revenue grew
by 46.6%, primarily driven by strong growth in the insurance
business due to high levels of renewals and new business volumes,
and the accounting impact of signing a new five-year pet insurance
agreement.
Adjusted operating profit on a
continuing operations basis was £94m, compared to £9m in the prior
year. The first half performance included a £42m non-recurring benefit,
including the £33m accounting impact of upfront commission income
on the signing of a new pet insurance agreement and £9m income on
banking deposits with the Bank of England, which will cease
following completion of the proposed sale to Barclays. In
addition, the prior year included a £(24)m
impact from a movement in insurance reserves.
The remaining adjusted operating profit growth
mostly reflects a strong performance in motor and home
insurance. Adjusted operating profit from discontinued
operations was £94m, compared to £56m in the prior year, primarily
driven by favourable movements in expected credit losses due to
recent improvements in the economic outlook.
We expect the transaction to
complete by the end of this calendar year. On an ongoing
basis, we expect an adjusted operating profit contribution of
between £80m to £100m per year. For the 24/25 financial year,
we now expect a contribution from the retained Tesco Bank business
of around £120m, which includes the £42m of non-recurring benefit
described above.
Adjusting items:
|
|
H1 24/25
£m
|
H1 23/24
£m
|
|
Property transactions
|
7
|
24
|
|
Amortisation of acquired
intangible assets
|
(38)
|
(37)
|
|
Other*
|
(6)
|
13
|
|
Total adjusting items in statutory operating
profit (continuing
operations)
|
(37)
|
-
|
|
Net finance income
|
51
|
18
|
|
Tax
|
(2)
|
23
|
|
Total adjusting items (continuing operations)
|
12
|
41
|
|
Adjusting items (discontinued
operations)
|
(41)
|
-
|
|
Total adjusting items
|
(29)
|
41
|
* Other includes the gain on
disposal of Booker's Ritter-Courivaud Limited subsidiary in the
prior year.
Adjusting items are excluded from
our adjusted operating profit performance by virtue of their size
and nature, to provide a helpful perspective of the year-on-year
performance of the Group's ongoing business. Total adjusting items
in statutory operating profit from continuing operations resulted
in a net charge of £(37)m, compared to net nil in the prior
year.
Property transactions of £7m
relates primarily to the sale of surplus properties. In the
prior year, property transactions represented net income of £24m.
We continue to present £(38)m of amortisation of acquired
intangible assets, principally relating to the merger with Booker,
as an adjusting item.
Adjusting items in net finance
income and tax are set out below. Adjusting items in
discontinued operations of £(41)m primarily relates to fair value
remeasurement of assets of the disposal group, associated with the
sale of our banking operations to Barclays.
Further detail on adjusting items
can be found in Note 3, starting on page 27 and on discontinued
operations in Note 6, starting on page 29.
Net finance costs:
|
On a continuing operations
basis
|
H1 24/25
£m
|
H1 23/24
£m
|
|
Net interest costs
|
(77)
|
(100)
|
|
Net finance expenses from
insurance contracts
|
(6)
|
(4)
|
|
Finance charges payable on lease
liabilities
|
(186)
|
(183)
|
|
Net finance costs before adjusting items
|
(269)
|
(287)
|
|
Fair value remeasurements of
financial instruments
|
66
|
28
|
|
Net pension finance income /
(costs)
|
(15)
|
(10)
|
|
Adjusting items in net finance costs
|
51
|
18
|
|
Net finance costs
|
(218)
|
(269)
|
Net finance costs before adjusting
items were £(269)m, £18m lower year-on-year due to higher interest
earned on cash, short-term deposits and money market funds.
Within adjusting items, fair value remeasurements
of financial instruments led to a credit of £66m compared to a £28m
credit in the prior year, largely driven by non-cash mark-to-market
movements on certain derivative financial instruments that are not
hedge accounted.
Further detail on finance income
and costs can be found in Note 4 on page 28, as well as further
detail on the adjusting items in Note 3, starting on page
27.
Group tax:
|
On a continuing operations
basis
|
H1 24/25
£m
|
H1 23/24
£m
|
|
Tax on adjusted profit
|
(368)
|
(297)
|
|
Tax on adjusting items
|
(2)
|
23
|
|
Tax on profit
|
(370)
|
(274)
|
Tax on adjusted Group profit was
£(368)m, £(71)m higher than last year, primarily due to higher
profit and the full year impact of the increase in the UK
corporation tax rate from 19% to 25%, effective from 1 April
2023.
The prior year £23m adjusting
credit relates to the release of a tax provision, following a
settlement relating to our exit from the Gain Land Associate in
China in February 2020.
The effective tax rate on adjusted
Group profit was 26.7%, higher than the current UK statutory rate
of 25%, primarily due to the depreciation of assets which do not
qualify for tax relief. We continue to expect our effective
tax rate to be around 27% in the current year.
Earnings per share:
|
On a continuing operations
basis
|
H1 24/25
|
H1 23/24
|
YoY change
|
|
Adjusted diluted EPS
|
14.45p
|
11.68p
|
23.7%
|
|
Statutory diluted EPS
|
14.62p
|
12.25p
|
19.3%
|
|
Statutory basic EPS
|
14.76p
|
12.34p
|
19.6%
|
|
On a total basis, including
discontinued operations
|
|
|
|
|
Statutory diluted EPS
|
15.03p
|
12.83p
|
17.1%
|
|
Statutory basic EPS
|
15.18p
|
12.93p
|
17.4%
|
Adjusted diluted EPS was 14.45p,
23.7% higher year-on-year, mainly due to
an increase in adjusted operating profit, the benefit of our
ongoing share buyback programme and a reduction in net finance
costs.
Statutory diluted EPS
was 14.62p, 19.3% higher year-on-year, as the
adjusted operating profit performance was partially offset by lower
profits generated on property transactions and higher favourable
non-cash mark-to-market movements on financial
instruments.
On a total basis, including
discontinued operations, statutory diluted EPS was 15.03p, 17.1%
higher year-on-year.
Dividend:
The interim dividend has been set
at 4.25 pence per ordinary share, in line with our policy of
setting the interim dividend at 35% of the prior full-year
dividend.
The interim dividend will
be paid on 22 November
2024 to shareholders who are on the register of members at close of
business on 11 October 2024 (the Record Date). Shareholders
may elect to reinvest their dividend in the Dividend Reinvestment
Plan (DRIP). The last date for receipt of DRIP elections and
revocations will be 1 November 2024.
Summary of total indebtedness (excludes Tesco
Bank):
|
|
Aug-24
£m
|
Feb-24
£m
|
Movement
£m
|
|
Net debt before lease
liabilities
|
(2,135)
|
(2,144)
|
9
|
|
Lease liabilities
|
(7,541)
|
(7,620)
|
79
|
|
Net debt
|
(9,676)
|
(9,764)
|
88
|
|
Pension deficit, IAS 19 basis
(post-tax)
|
(320)
|
(493)
|
173
|
|
Total indebtedness
|
(9,996)
|
(10,257)
|
261
|
|
|
|
|
|
|
Net debt / EBITDA
|
2.1x
|
2.2x
|
|
|
Total indebtedness ratio
|
2.2x
|
2.4x
|
|
Net debt was £(9,676)m, a
reduction of £88m versus year end, predominantly driven by strong
retail free cash flow generation of £1,261m which exceeded the cash
outflows relating to our ongoing share buyback programme of £(575)m
and last year's final dividend of £(575)m. Lease liabilities
of £(7,541)m were £79m lower compared to year end, driven by the
overall reducing nature of our lease liability, partially offset by
the impact of rent reviews and new stores.
Total indebtedness was £(9,996)m,
a decrease of £261m versus year end. In addition to the net
debt impacts described above, the IAS 19 pension deficit (post-tax)
decreased by £173m to £(320)m, reflecting movements in market
conditions which impact discount rate assumptions and can have a
volatile effect on the IAS 19 position. The trustees of each
pension scheme, including the main Tesco Pension Scheme, are
required to calculate the net funding surplus/deficit on the basis
of Technical Provisions in accordance with regulations and guidance
issued by the relevant regulator. On this basis, the main UK
scheme continues to be in surplus.
We had strong levels of liquidity
at the end of the first half, including £3.1 billion of cash and
highly liquid short-term deposits and money market
investments. In addition, our £2.5 billion committed
revolving credit facility remained undrawn and is in place until at
least October 2026, with one remaining one-year extension option
available.
Our Net debt to EBITDA ratio was
2.1 times at the end of the first half, below our target range of
2.8 to 2.3 times. The total indebtedness ratio was 2.2 times
compared to 2.4 times at year-end.
Fixed charge cover was 3.9 times
at the end of the first half, which is an improvement since year
end, primarily due to an increase in Retail EBITDA.
Summary retail free cash
flow:
The following table reconciles
Group adjusted operating profit to retail free cash flow.
Further details are included in Note 2, starting on page
22.
|
On a continuing operations
basis
|
H1 24/25
£m
|
H1 23/24
£m
|
|
Adjusted operating profit
|
1,649
|
1,426
|
|
Less: Tesco Bank adjusted
operating (profit) / loss
|
(94)
|
(9)
|
|
Retail adjusted operating profit
|
1,555
|
1,417
|
|
Add back: Depreciation and
amortisation
|
819
|
790
|
|
Other reconciling items
|
22
|
18
|
|
Pensions
|
(14)
|
(13)
|
|
Decrease in working
capital
|
169
|
368
|
|
Retail cash generated from operations before adjusting
items
|
2,551
|
2,580
|
|
Cash capex
|
(594)
|
(595)
|
|
Net interest
|
(244)
|
(273)
|
|
- Interest
related to Net debt before lease liabilities
|
(58)
|
(91)
|
|
- Interest
related to lease liabilities
|
(186)
|
(182)
|
|
Tax paid
|
(176)
|
(38)
|
|
Dividends received
|
2
|
6
|
|
Repayment of capital element of
obligations under leases
|
(295)
|
(306)
|
|
Own shares purchased for share
schemes
|
17
|
(6)
|
|
Retail free cash flow
|
1,261
|
1,368
|
|
Memo (not included in retail free cash flow
definition):
|
|
|
|
- Special
dividend received from Tesco Bank
|
-
|
250
|
|
- Net
acquisitions and disposals
|
(50)
|
7
|
|
- Property
buybacks, store purchases and disposal proceeds
|
(14)
|
(3)
|
|
- Cash
impact of adjusting items
|
(52)
|
(87)
|
We delivered strong retail free
cash flow of £1,261m, driven by the retail adjusted operating
profit performance and including a further benefit from working
capital. This is £(107)m lower than last year, primarily
reflecting lower working capital benefits and higher tax
paid.
Our total working capital inflow
was £169m, reflecting the strong volume performance in the half,
leading to higher trade balances. The higher working capital
benefit last year primarily reflects a higher level of cost
inflation, which has normalised in the current year.
Net interest paid was £29m lower
year-on-year, due to higher interest earned on cash balances,
short-term deposits and money market funds.
Tax paid was £(138)m higher
year-on-year, mainly due to no longer benefiting from tax relief
related to the £2.5bn one-off pension contribution made in 2021,
which was fully utilised in the prior year, and the impact of
higher retail adjusted operating profit
year-on-year.
Within the memo lines shown, the
net £(50)m outflow relating to acquisitions and disposals primarily
relates to Booker's acquisition of Venus Wine and Spirit Merchants
PLC. The cash impact of adjusting items of £(52)m relates to
operational restructuring changes as part of our Save to Invest
programme, which were provided for at the end of the prior
financial year.
Capital expenditure and
space:
|
|
UK &
ROI
|
Central
Europe
|
Tesco Bank
|
Group
|
|
|
H1 24/25
|
H1
23/24
|
H1 24/25
|
H1
23/24
|
H1 24/25
|
H1*
23/24
|
H1 24/25
|
H1
23/24
|
|
Capex
|
£494m
|
£465m
|
£33m
|
£43m
|
£3m
|
£15m
|
£530m
|
£523m
|
|
Openings (k sq ft)
|
116
|
81
|
44
|
49
|
-
|
-
|
160
|
130
|
|
Closures (k sq ft)
|
(35)
|
(117)
|
-
|
(14)
|
-
|
-
|
(35)
|
(131)
|
|
Repurposed (k sq ft)
|
-
|
-
|
(107)
|
(149)
|
-
|
-
|
(107)
|
(149)
|
|
Net space change (k sq ft)
|
81
|
(36)
|
(63)
|
(114)
|
-
|
-
|
18
|
(150)
|
The data above excludes space
relating to franchise stores. A full breakdown of space by
segment is included in the appendices starting on page
50.
* Includes £13m
relating to the banking operations disposal group, classified as
held for sale in February 2024.
Capital expenditure shown in the
table above reflects expenditure on ongoing business activities
across the Group, excluding property buybacks and store
purchases.
Our capital expenditure in the
first half was £530m, which was broadly in line with last
year. We continue to prioritise investments in high returning
areas, including automation in parts of our distribution network
and developing our digital platforms, in addition to continued
investment in our store estate.
In the first half, we opened a
total of 44 stores across the Group and refreshed a further 182
stores. In the UK, we opened one superstore, 19 Tesco Express
stores and six One Stop stores and in ROI we opened four new large
stores and three Tesco Express stores. In Central Europe, we
opened eleven new convenience stores.
We continue to expect full year
capital expenditure of around £1.4bn.
Statutory capital expenditure for
the first half was £0.6bn.
Further details of current space
can be found in the appendices starting on page 50.
Contacts.
|
Investor Relations:
|
Chris Griffith
|
01707 940 900
|
|
|
Andrew Gwynn
|
01707 942 409
|
|
Media:
|
Christine Heffernan
|
0330 6780 639
|
|
|
Teneo
|
0207 4203 143
|
This document is available at
www.tescoplc.com/interims2024.
A webcast including a Q&A will
be held today at 9.00am for investors and analysts and will be
available on our website at www.tescoplc.com/interims2024.
This will be available for playback after the event. All
presentation materials, including a transcript, will be made
available on our website.
We will report our Q3 &
Christmas Trading statement on 9 January 2025.
Sources.
|
•
|
UK market share based on Kantar
Total Grocers Total Till Roll on 12-week rolling basis to 1
September 2024.
|
|
•
|
UK Kantar net switching gains
12-week rolling basis to 1 September 2024.
|
|
•
|
ROI market share based on Kantar
Total Till Roll on 12-week rolling basis to 1 September
2024.
|
|
•
|
ROI Kantar net switching gains
12-week rolling basis to 1 September 2024.
|
|
•
|
'Full-line grocers' refers to
Tesco, Sainsbury's, Asda and Morrisons.
|
|
•
|
UK Price index is an internal
measure calculated using the retail selling price of each item on a
per unit or unit of measure basis. Competitor retail selling prices
are collected weekly by a third party. The price index includes
price cut promotions and is weighted by sales to reflect customer
importance.
|
|
•
|
Clubcard Prices saving of up to
£385 is based on the top 25% of Tesco Clubcard members and large
stores sales between 1 September 2023 and 30 August 2024. Tesco
Clubcard Price savings versus regular Tesco price.
|
|
•
|
Customer satisfaction and Brand
Perception based on YoY changes in YouGov BrandIndex scores for the
12 weeks ended 25 August 2024.
|
|
•
|
Availability based on Multi
channel tracker. 3 period rolling data. Responses to: "I Can Get
What I Want".
|
|
•
|
Number of new Booker retail
partners is net of openings and closures.
|
|
•
|
Brand NPS is based on BASIS Global
Brand Tracker. 3 period rolling data. Responses to the question:
"How likely is it that you would recommend the following company to
a friend or colleague as a place to shop?"
|
|
•
|
Colleague satisfaction based on
Every Voice Matters colleague engagement survey result for July
2024. Refers to responses of agreement to 'I would recommend Tesco
as a great place to work'.
|
Additional
Disclosures.
Principal Risks and
Uncertainties.
The principal risks and
uncertainties faced by the Group remain those as set out on pages
30 to 37 of our Annual Report and Financial Statements 2024: cyber
security; data privacy; climate change; technology; responsible
sourcing; health and safety; product safety and food integrity;
people; financial performance; customer; regulatory and compliance;
Tesco Bank; geopolitics and other global events; security of
supply; and competition and markets.
Statement of Directors'
Responsibilities.
The Directors are responsible for
preparing the Interim Results for the 26-week period ended 24
August 2024 in accordance with applicable law, regulations and
accounting standards. Each of the Directors confirm that to
the best of their knowledge the condensed consolidated interim
financial statements have been prepared in accordance with IAS 34:
'Interim Financial Reporting', as adopted by the European Union and
that the interim management report includes a true and fair review
of the information required by DTR 4.2.7R and DTR 4.2.8R,
namely:
|
•
|
an indication of the important
events that have occurred during the first 26 weeks of the
financial year and their impact on the condensed consolidated
interim financial statements, and a description of the principal
risks and uncertainties for the remainder of the financial year;
and
|
|
•
|
material related party
transactions in the first 26 weeks of the year and any material
changes in the related party transactions described in the last
annual report.
|
The Directors of Tesco PLC are
listed on pages 52 to 54 of the Tesco PLC Annual Report and
Financial Statements 2024.
A list of current directors is
maintained on the Tesco PLC website at: www.tescoplc.com.
By order of the Board
Directors
Gerry Murphy - Non-executive
Chairman
Ken Murphy - Group Chief
Executive
Imran Nawaz - Chief Financial
Officer
Melissa Bethell*
Bertrand Bodson*
Dame Carolyn Fairbairn*
Thierry Garnier*
Stewart Gilliland*
Alison Platt*
Caroline Silver*
Karen Whitworth*
*Independent Non-executive
Directors
2 October 2024
Disclaimer.
Certain statements made in this
document are forward-looking statements. For example, statements
regarding future financial performance, market trends and our
product pipeline are forward-looking statements. Phrases such as
"aim", "plan", "intend", "should", "anticipate", "well-placed",
"believe", "estimate", "expect", "target", "consider" and similar
expressions are generally intended to identify forward-looking
statements. Forward-looking statements are based on current
expectations and assumptions and are subject to a number of known
and unknown risks, uncertainties and other important factors that
could cause actual results or events to differ materially from what
is expressed or implied by those statements. Many factors may cause
actual results, performance or achievements of Tesco to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Important factors that could cause actual results,
performance or achievements of Tesco to differ materially from the
expectations of Tesco include, among other things, general business
and economic conditions globally, industry trends, competition,
changes in government and other regulation and policy, including in
relation to the environment, health and safety and taxation, labour
relations and work stoppages, interest rates and currency
fluctuations, changes in its business strategy, political and
economic uncertainty, including as a result of global pandemics. As
such, undue reliance should not be placed on forward-looking
statements. Any forward-looking statement is based on information
available to Tesco as of the date of the statement. All written or
oral forward-looking statements attributable to Tesco are qualified
by this caution. Other than in accordance with legal and regulatory
obligations, Tesco undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Group income statement
|
|
|
26 weeks ended
24 August 2024
|
|
26 weeks ended
26 August 2023
(restated*)
|
|
|
Notes
|
Before adjusting
Items
£m
|
Adjusting
items
(Note 3)
£m
|
Total
£m
|
|
Before adjusting
Items
£m
|
Adjusting
items
(Note 3)
£m
|
Total
£m
|
|
Continuing operations
|
|
|
|
|
|
|
|
|
|
Revenue from sale of goods and
services
|
|
34,432
|
-
|
34,432
|
|
33,578
|
-
|
33,578
|
|
Insurance revenue
|
|
341
|
-
|
341
|
|
223
|
-
|
223
|
|
Revenue
|
2
|
34,773
|
-
|
34,773
|
|
33,801
|
-
|
33,801
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
(31,751)
|
(5)
|
(31,756)
|
|
(31,123)
|
5
|
(31,118)
|
|
Insurance service
expenses
|
|
(272)
|
-
|
(272)
|
|
(206)
|
-
|
(206)
|
|
Net expenses from reinsurance
contracts held
|
|
(30)
|
-
|
(30)
|
|
(27)
|
-
|
(27)
|
|
Gross profit/(loss)
|
|
2,720
|
(5)
|
2,715
|
|
2,445
|
5
|
2,450
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
(1,071)
|
(32)
|
(1,103)
|
|
(1,019)
|
(5)
|
(1,024)
|
|
Operating profit/(loss)
|
2
|
1,649
|
(37)
|
1,612
|
|
1,426
|
-
|
1,426
|
|
|
|
|
|
|
|
|
|
|
|
Share of post-tax profit/(loss) of joint
ventures and associates
|
|
(2)
|
-
|
(2)
|
|
4
|
-
|
4
|
|
Finance income
|
4
|
132
|
-
|
132
|
|
131
|
-
|
131
|
|
Finance costs
|
4
|
(401)
|
51
|
(350)
|
|
(418)
|
18
|
(400)
|
|
Profit/(loss) before tax from continuing
operations
|
|
1,378
|
14
|
1,392
|
|
1,143
|
18
|
1,161
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
5
|
(368)
|
(2)
|
(370)
|
|
(297)
|
23
|
(274)
|
|
Profit/(loss) for the period from continuing
operations
|
|
1,010
|
12
|
1,022
|
|
846
|
41
|
887
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period from discontinued
operations
|
6
|
70
|
(41)
|
29
|
|
42
|
-
|
42
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period
|
|
1,080
|
(29)
|
1,051
|
|
888
|
41
|
929
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
1,080
|
(29)
|
1,051
|
|
886
|
41
|
927
|
|
Non-controlling interests
|
|
-
|
-
|
-
|
|
2
|
-
|
2
|
|
|
|
1,080
|
(29)
|
1,051
|
|
888
|
41
|
929
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing and
discontinued operations
|
|
|
|
|
|
|
|
|
|
Basic
|
8
|
|
|
15.18p
|
|
|
|
12.93p
|
|
Diluted
|
8
|
|
|
15.03p
|
|
|
|
12.83p
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share from continuing
operations
|
|
|
|
|
|
|
|
|
|
Basic
|
8
|
|
|
14.76p
|
|
|
|
12.34p
|
|
Diluted
|
8
|
|
|
14.62p
|
|
|
|
12.25p
|
* Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
The notes on pages 21 to 42 form part of this
condensed consolidated financial information.
Group statement of comprehensive
income/(loss)
|
|
Notes
|
26 weeks ended 24 August
2024
£m
|
26 weeks ended 26 August 2023
(restated*)
£m
|
|
Items that will not be reclassified to the
Group income statement
|
|
|
|
|
Change in fair value of financial assets at
fair value through other comprehensive income
|
|
-
|
(1)
|
|
Remeasurements of defined benefit pension
schemes
|
16
|
252
|
213
|
|
Net fair value gains/(losses) on inventory cash
flow hedges
|
|
(33)
|
(15)
|
|
Tax on items that will not be
reclassified
|
|
(59)
|
(49)
|
|
|
|
160
|
148
|
|
Items that may subsequently be reclassified to
the Group income statement
|
|
|
|
|
Change in fair value of financial
assets at fair value through other comprehensive income
|
|
13
|
(5)
|
|
Currency translation differences:
|
|
|
|
|
Retranslation of net assets of overseas
subsidiaries, joint ventures and associates, net of hedging
instruments
|
|
(22)
|
(73)
|
|
Gains/(losses) on cash flow hedges:
|
|
|
|
|
Net fair value gains/(losses)
|
|
27
|
16
|
|
Reclassified and reported in the Group income
statement
|
|
(36)
|
(25)
|
|
Finance income/(expenses) from
insurance contracts issued
|
|
(3)
|
4
|
|
Finance income/(expenses) from
reinsurance contracts held
|
|
1
|
(2)
|
|
Tax on items that may be
reclassified
|
|
-
|
(8)
|
|
|
|
(20)
|
(93)
|
|
Total other comprehensive income/(loss) for the
period
|
|
140
|
55
|
|
Profit/(loss) for the period
|
|
1,051
|
929
|
|
Total comprehensive income/(loss) for the
period
|
|
1,191
|
984
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
Owners of the parent
|
|
1,191
|
980
|
|
Non-controlling interests
|
|
-
|
4
|
|
Total comprehensive income/(loss) for the
period
|
|
1,191
|
984
|
|
|
|
|
|
|
Total comprehensive income/(loss) attributable
to owners of the parent arising from:
|
|
|
|
|
Continuing operations
|
|
1,162
|
938
|
|
Discontinued operations
|
6
|
29
|
42
|
|
|
|
1,191
|
980
|
* Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
The notes on pages 21 to 42 form part of this
condensed consolidated financial information.
Group balance sheet
|
|
Notes
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Non-current assets
|
|
|
|
|
|
Goodwill and other intangible assets
|
|
5,116
|
5,066
|
5,367
|
|
Property, plant and equipment
|
9
|
17,136
|
17,221
|
16,790
|
|
Right of use assets
|
10
|
5,434
|
5,478
|
5,522
|
|
Investment property
|
|
23
|
24
|
25
|
|
Investments in joint ventures and
associates
|
|
100
|
102
|
97
|
|
Other investments
|
|
817
|
1,546
|
1,360
|
|
Trade and other
receivables
|
|
119
|
36
|
68
|
|
Loans and advances to
customers
|
|
-
|
-
|
3,362
|
|
Reinsurance contract
assets
|
14
|
122
|
125
|
110
|
|
Derivative financial instruments
|
|
789
|
781
|
851
|
|
Post-employment benefit surplus
|
16
|
42
|
22
|
22
|
|
Deferred tax assets
|
|
39
|
32
|
76
|
|
|
|
29,737
|
30,433
|
33,650
|
|
Current assets
|
|
|
|
|
|
Other investments
|
|
166
|
206
|
325
|
|
Inventories
|
|
2,964
|
2,635
|
2,856
|
|
Trade and other
receivables
|
|
1,264
|
1,349
|
1,283
|
|
Loans and advances to
customers
|
|
-
|
-
|
4,060
|
|
Derivative financial
instruments
|
|
10
|
55
|
71
|
|
Current tax assets
|
|
10
|
110
|
16
|
|
Short-term investments
|
11
|
1,912
|
2,128
|
2,692
|
|
Cash and cash equivalents
|
11
|
3,310
|
2,340
|
2,526
|
|
|
|
9,636
|
8,823
|
13,829
|
|
Assets of the disposal group and non-current
assets classified as held for sale
|
6
|
8,185
|
7,783
|
141
|
|
|
|
17,821
|
16,606
|
13,970
|
|
Current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
(10,884)
|
(10,264)
|
(10,591)
|
|
Borrowings
|
13
|
(1,516)
|
(1,536)
|
(2,017)
|
|
Lease liabilities
|
10
|
(607)
|
(584)
|
(593)
|
|
Provisions
|
|
(259)
|
(306)
|
(278)
|
|
Insurance contract
liabilities
|
14
|
(584)
|
(526)
|
(498)
|
|
Customer deposits and deposits from
banks
|
|
(582)
|
(108)
|
(4,860)
|
|
Derivative financial
instruments
|
|
(51)
|
(25)
|
(64)
|
|
Current tax liabilities
|
|
(24)
|
(1)
|
(57)
|
|
|
|
(14,507)
|
(13,350)
|
(18,958)
|
|
Liabilities of the disposal group classified as
held for sale
|
6
|
(7,512)
|
(7,122)
|
-
|
|
Net current liabilities
|
|
(4,198)
|
(3,866)
|
(4,988)
|
|
Non-current liabilities
|
|
|
|
|
|
Trade and other payables
|
|
(47)
|
(39)
|
(67)
|
|
Borrowings
|
13
|
(5,580)
|
(5,683)
|
(5,911)
|
|
Lease liabilities
|
10
|
(6,935)
|
(7,038)
|
(7,116)
|
|
Provisions
|
|
(172)
|
(175)
|
(195)
|
|
Customer deposits and deposits from
banks
|
|
(175)
|
(800)
|
(2,465)
|
|
Derivative financial
instruments
|
|
(210)
|
(241)
|
(329)
|
|
Post-employment benefit deficit
|
16
|
(426)
|
(657)
|
(200)
|
|
Deferred tax liabilities
|
|
(415)
|
(269)
|
(322)
|
|
|
|
(13,960)
|
(14,902)
|
(16,605)
|
|
Net assets
|
|
11,579
|
11,665
|
12,057
|
|
Equity
|
|
|
|
|
|
Share capital
|
17
|
433
|
445
|
451
|
|
Share premium
|
|
5,165
|
5,165
|
5,165
|
|
Other reserves
|
17
|
3,002
|
3,131
|
3,018
|
|
Retained earnings
|
|
2,985
|
2,930
|
3,430
|
|
Equity attributable to owners of the
parent
|
|
11,585
|
11,671
|
12,064
|
|
Non-controlling interests
|
|
(6)
|
(6)
|
(7)
|
|
Total equity
|
|
11,579
|
11,665
|
12,057
|
The notes on pages 21 to 42 form part of this
condensed consolidated financial information.
These unaudited condensed
consolidated interim financial statements for the 26 weeks ended 24
August 2024 were approved by the Board on 2 October
2024.
Group statement of changes in equity
|
|
Notes
|
Share
Capital
£m
|
Share
Premium
£m
|
Other reserves
(Note 17)
£m
|
Retained earnings
£m
|
Total
£m
|
Non-controlling
interests
£m
|
Total
Equity
£m
|
|
At 24 February 2024
|
|
445
|
5,165
|
3,131
|
2,930
|
11,671
|
(6)
|
11,665
|
|
Profit/(loss) for the
period
|
|
-
|
-
|
-
|
1,051
|
1,051
|
-
|
1,051
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
|
Retranslation of net assets of
overseas subsidiaries, joint ventures and associates, net of
hedging instruments
|
|
-
|
-
|
(22)
|
-
|
(22)
|
-
|
(22)
|
|
Change in fair value of financial
assets at fair value through other comprehensive income
|
|
-
|
-
|
-
|
13
|
13
|
-
|
13
|
|
Remeasurements of defined benefit
pension schemes
|
16
|
-
|
-
|
-
|
252
|
252
|
-
|
252
|
|
Gains/(losses) on cash flow
hedges
|
|
-
|
-
|
(6)
|
-
|
(6)
|
-
|
(6)
|
|
Cash flow hedges reclassified and
reported in the Group income statement
|
|
-
|
-
|
(36)
|
-
|
(36)
|
-
|
(36)
|
|
Finance income/(expenses) from
insurance contracts issued
|
|
-
|
-
|
(3)
|
-
|
(3)
|
-
|
(3)
|
|
Finance income/(expenses) from
reinsurance contracts held
|
|
-
|
-
|
1
|
-
|
1
|
-
|
1
|
|
Tax relating to components of other
comprehensive income
|
|
-
|
-
|
5
|
(64)
|
(59)
|
-
|
(59)
|
|
Total other comprehensive
income/(loss)
|
|
-
|
-
|
(61)
|
201
|
140
|
-
|
140
|
|
Total comprehensive income/(loss)
|
|
-
|
-
|
(61)
|
1,252
|
1,191
|
-
|
1,191
|
|
Inventory cash flow hedge movements
|
|
|
|
|
|
|
|
|
|
(Gains)/losses transferred to the cost of
inventory
|
|
-
|
-
|
9
|
-
|
9
|
-
|
9
|
|
Total inventory cash flow hedge
movements
|
|
-
|
-
|
9
|
-
|
9
|
-
|
9
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
Own shares purchased for
cancellation
|
17
|
-
|
-
|
(746)
|
-
|
(746)
|
-
|
(746)
|
|
Own shares cancelled
|
17
|
(12)
|
-
|
587
|
(575)
|
-
|
-
|
-
|
|
Own shares purchased for share
schemes
|
|
-
|
-
|
(101)
|
-
|
(101)
|
-
|
(101)
|
|
Share-based payments
|
|
-
|
-
|
183
|
(46)
|
137
|
-
|
137
|
|
Dividends
|
7
|
-
|
-
|
-
|
(576)
|
(576)
|
-
|
(576)
|
|
Total transactions with owners
|
|
(12)
|
-
|
(77)
|
(1,197)
|
(1,286)
|
-
|
(1,286)
|
|
At 24 August 2024
|
|
433
|
5,165
|
3,002
|
2,985
|
11,585
|
(6)
|
11,579
|
|
|
|
Share
Capital
£m
|
Share
Premium
£m
|
Other reserves
(Note 17)
£m
|
Retained earnings
£m
|
Total
£m
|
Non-controlling
interests
£m
|
Total
Equity
£m
|
|
At 25 February 2023
|
|
463
|
5,165
|
3,139
|
3,469
|
12,236
|
(11)
|
12,225
|
|
Profit/(loss) for the
period
|
|
-
|
-
|
-
|
927
|
927
|
2
|
929
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
|
Retranslation of net assets of
overseas subsidiaries, joint ventures and associates, net of
hedging instruments
|
|
-
|
-
|
(73)
|
-
|
(73)
|
-
|
(73)
|
|
Change in fair value of financial
assets at fair value through other comprehensive income
|
|
-
|
-
|
-
|
(6)
|
(6)
|
-
|
(6)
|
|
Remeasurements of defined benefit
pension schemes
|
16
|
-
|
-
|
-
|
213
|
213
|
-
|
213
|
|
Gains/(losses) on cash flow
hedges
|
|
-
|
-
|
(1)
|
-
|
(1)
|
2
|
1
|
|
Cash flow hedges reclassified and
reported in the Group income statement
|
|
-
|
-
|
(25)
|
-
|
(25)
|
-
|
(25)
|
|
Finance income/(expenses) from
insurance contracts issued
|
|
-
|
-
|
4
|
-
|
4
|
-
|
4
|
|
Finance income/(expenses) from
reinsurance contracts held
|
|
-
|
-
|
(2)
|
-
|
(2)
|
-
|
(2)
|
|
Tax relating to components of other
comprehensive income
|
|
-
|
-
|
(8)
|
(49)
|
(57)
|
-
|
(57)
|
|
Total other comprehensive
income/(loss)
|
|
-
|
-
|
(105)
|
158
|
53
|
2
|
55
|
|
Total comprehensive income/(loss)
|
|
-
|
-
|
(105)
|
1,085
|
980
|
4
|
984
|
|
Transfer from hedging reserve to retained
earnings
|
|
-
|
-
|
44
|
(44)
|
-
|
-
|
-
|
|
Inventory cash flow hedge movements
|
|
|
|
|
|
|
|
|
|
(Gains)/losses transferred to the cost of
inventory
|
|
-
|
-
|
47
|
-
|
47
|
-
|
47
|
|
Total inventory cash flow hedge
movements
|
|
-
|
-
|
47
|
-
|
47
|
-
|
47
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
|
Own shares purchased for
cancellation
|
17
|
-
|
-
|
(752)
|
-
|
(752)
|
-
|
(752)
|
|
Own shares cancelled
|
17
|
(12)
|
-
|
515
|
(503)
|
-
|
-
|
-
|
|
Own shares purchased for share
schemes
|
|
-
|
-
|
(47)
|
-
|
(47)
|
-
|
(47)
|
|
Share-based payments
|
|
-
|
-
|
177
|
(67)
|
110
|
-
|
110
|
|
Dividends
|
7
|
-
|
-
|
-
|
(510)
|
(510)
|
-
|
(510)
|
|
Total transactions with owners
|
|
(12)
|
-
|
(107)
|
(1,080)
|
(1,199)
|
-
|
(1,199)
|
|
At 26 August 2023
|
|
451
|
5,165
|
3,018
|
3,430
|
12,064
|
(7)
|
12,057
|
The notes on pages 21 to 42 form part of this
condensed consolidated financial information.
Group cash flow statement
|
|
Notes
|
26 weeks ended 24 August
2024
£m
|
26 weeks ended 26 August
2023
(restated(a))
£m
|
|
Cash flows generated from/(used in) operating
activities
|
|
|
|
|
Operating profit/(loss) of continuing
operations
|
|
1,612
|
1,426
|
|
Operating profit/(loss) of discontinued
operations
|
|
40
|
56
|
|
Depreciation and amortisation
|
|
866
|
850
|
|
(Profit)/loss arising on sale of property,
plant and equipment, investment property, intangible assets, assets
classified as held for sale and early termination of
leases
|
|
(3)
|
2
|
|
(Profit)/loss arising on sale of
subsidiaries
|
|
-
|
(12)
|
|
Net remeasurement (gain)/loss on non-current
assets held for sale
|
|
44
|
(16)
|
|
Defined benefit pension scheme
payments
|
16
|
(14)
|
(13)
|
|
Share-based payments
|
|
19
|
13
|
|
Fair value movements included in operating
profit/(loss)
|
|
10
|
38
|
|
Retail (increase)/decrease in
inventories
|
|
(328)
|
(364)
|
|
Retail (increase)/decrease in trade and other
receivables
|
|
(35)
|
(39)
|
|
Retail increase/(decrease) in trade and other
payables
|
|
533
|
764
|
|
Retail increase/(decrease) in
provisions
|
|
(48)
|
(81)
|
|
Retail (increase)/decrease in working
capital
|
|
122
|
280
|
|
Tesco Bank (increase)/decrease in loans and
advances to customers
|
|
(355)
|
(480)
|
|
Tesco Bank (increase)/decrease in trade,
reinsurance and other receivables
|
|
1
|
26
|
|
Tesco Bank increase/(decrease) in customer and
bank deposits, trade, insurance and other payables
|
|
274
|
583
|
|
Tesco Bank increase/(decrease) in
provisions
|
|
(3)
|
(2)
|
|
Tesco Bank (increase)/decrease in working
capital
|
|
(83)
|
127
|
|
Cash generated from/(used in)
operations
|
|
2,613
|
2,751
|
|
Interest paid
|
|
(389)
|
(394)
|
|
Corporation tax paid
|
|
(181)
|
(45)
|
|
Net cash generated from/(used in) operating
activities
|
|
2,043
|
2,312
|
|
Cash flows generated from/(used in) investing
activities
|
|
|
|
|
Proceeds from sale of property, plant and
equipment, investment property, intangible assets and assets
classified as held for sale
|
|
16
|
34
|
|
Purchase of property, plant and equipment,
investment property and other long-term assets
|
|
(480)
|
(499)
|
|
Purchase of intangible assets
|
|
(141)
|
(138)
|
|
Disposal of subsidiaries, net of cash
disposed
|
|
-
|
15
|
|
Acquisition of subsidiaries, net of cash
acquired
|
|
(46)
|
-
|
|
Investments in joint ventures and
associates
|
|
(6)
|
(5)
|
|
Decrease in short-term
investments(b)
|
|
1,180
|
725
|
|
Increase in short-term
investments(b)
|
|
(964)
|
(1,801)
|
|
Proceeds from sale of other
investments
|
|
866
|
83
|
|
Purchase of other investments
|
|
(91)
|
(87)
|
|
Dividends received from joint ventures and
associates
|
|
2
|
6
|
|
Interest received
|
|
136
|
114
|
|
Cash inflows from derivative financial
instruments
|
|
27
|
3
|
|
Cash outflows from derivative financial
instruments
|
|
-
|
(15)
|
|
Net cash generated from/(used in) investing
activities
|
|
499
|
(1,565)
|
|
Cash flows generated from/(used in) financing
activities
|
|
|
|
|
Own shares purchased for
cancellation
|
17
|
(575)
|
(503)
|
|
Own shares purchased for share schemes, net of
cash received from employees
|
|
17
|
(6)
|
|
Repayment of capital element of obligations
under leases
|
|
(297)
|
(308)
|
|
Cash outflows exceeding the incremental
increase in assets in a property buyback
|
|
(14)
|
(15)
|
|
Increase in borrowings
|
|
342
|
982
|
|
Repayment of borrowings
|
|
(622)
|
(97)
|
|
Cash inflows from derivative financial
instruments
|
|
438
|
68
|
|
Cash outflows from derivative financial
instruments
|
|
(404)
|
(66)
|
|
Dividends paid to equity owners
|
7
|
(575)
|
(509)
|
|
Net cash generated from/(used in) financing
activities
|
|
(1,690)
|
(454)
|
|
Net increase/(decrease) in cash and cash
equivalents
|
|
852
|
293
|
|
Cash and cash equivalents at the beginning of
the period
|
|
1,874
|
1,565
|
|
Effect of foreign exchange rate
changes
|
|
(8)
|
(9)
|
|
Cash and cash equivalents, including cash held
in the disposal group at the end of the period
|
|
2,718
|
1,849
|
|
Less: Cash held in the disposal
group
|
6
|
(381)
|
-
|
|
Cash and cash equivalents at the end of the
period
|
11
|
2,337
|
1,849
|
(a)
Comparatives have been re-presented
to disclose Banking operations as a discontinued operation. Refer
to Note 6.
(b) Comparative
net (investments in)/proceeds from sale of short-term investments
has been re-presented on a gross basis as increase and decrease in
short-term investments.
The notes on pages 21 to 42 form part of this
condensed consolidated financial information.
Note 1 Basis of preparation
These unaudited condensed consolidated interim
financial statements have been prepared in accordance with the
Disclosure Guidance and Transparency Rules of the UK Financial
Conduct Authority, and with IAS 34 'Interim Financial Reporting'
under UK-adopted international accounting standards. Unless
otherwise stated, the accounting policies applied, and the
judgements, estimates and assumptions made in applying these
policies, are consistent with those used in preparing the Annual
Report and Financial Statements 2024. The financial period
represents the 26 weeks ended 24 August 2024 (prior financial
period 26 weeks ended 26 August 2023, prior financial year 52 weeks
ended 24 February 2024).
These condensed consolidated interim financial
statements for the current period and prior financial periods do
not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. A copy of the statutory accounts for the prior
financial year has been filed with the Registrar of Companies. The
auditor's report on those accounts was not qualified, did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying the report and did
not contain statements under section 498(2) or (3) of the Companies
Act 2006.
The Directors have, at the time of approving
the condensed consolidated interim financial statements, a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future, which
reflects a period of 18 months from the date of approval of the
condensed consolidated interim financial statements, and have
concluded that there are no material uncertainties relating to
going concern. The Directors have therefore continued to adopt the
going concern basis in preparing the condensed consolidated interim
financial statements. Further information on the Group's strong
liquidity position is given in the Group review of performance,
Summary of total indebtedness section.
Adoption of new IFRSs
Standards, interpretations and amendments
effective in the current financial year have not had a material
impact on the condensed consolidated interim financial
statements.
The Group has not applied any other standards,
interpretations or amendments that have been issued
but are not yet effective. The impact of
the following is still under assessment:
- IFRS 18 'Presentation
and disclosure in financial statements', which will become
effective in the consolidated Group financial statements for the
financial year ending 26 February 2028, subject to UK
endorsement.
Other standards, interpretations and amendments
issued but not yet effective are not expected to have a material
impact.
Alternative performance measures (APMs)
In the reporting of financial information, the
Directors have adopted various APMs. Refer to the Glossary for a
full list of the Group's APMs, including comprehensive definitions,
their purpose, reconciliations to IFRS measures and details of any
changes to APMs.
Note 2 Segmental reporting
The Group's operating segments are determined
based on the Group's organisational structure and internal
reporting to the Chief Operating Decision Maker (CODM).
The CODM has been
determined to be the Group Chief Executive, with support from the
Executive Committee, as the function primarily responsible for the
allocation of resources to segments and assessment of performance
of the segments.
The principal activities of the Group are
presented in the following reportable
segments:
- Retailing and
associated activities (Retail) in:
- UK & ROI
- the United Kingdom and Republic of Ireland; and
- Central
Europe - Czech Republic, Hungary and Slovakia.
- Retail
banking, insurance and money services through Tesco Bank in the UK
(Tesco Bank).
In February 2024, the Board announced the sale
of the Group's banking operation ('Banking operations'), which has
been consequently classified as a discontinued operation. Refer to
Note 6 for further details. The remaining insurance business and
money services are included within continuing operations. Both
continuing and discontinued elements remain within the Tesco Bank
segment, reflecting the Group's organisational structure and
internal reporting to the CODM at the half year reporting
date.
The CODM uses adjusted operating profit, as
reviewed at periodic Executive Committee meetings, as the key
measure of the segments' results as it reflects the segments' trading
performance that aids comparability over time for the financial
year under evaluation. Adjusted operating profit is a consistent
measure within the Group as defined within the Glossary. Refer to
Note 3 for adjusting items. Inter-segment revenue is not
material.
Income statement
The segment results and the reconciliation of
the segment measures to the respective statutory items included in
the Group income statement are as follows:
|
26 weeks ended 24 August 2024
At constant exchange rates
|
UK &
ROI
£m
|
Central
Europe
£m
|
Total
Retail
£m
|
Tesco
Bank
£m
|
Total
segments at
constant
exchange
£m
|
Foreign
exchange
£m
|
Exclude:
Banking operations
£m
|
Continuing operations at
actual
exchange
£m
|
|
Revenue
|
32,175
|
2,189
|
34,364
|
926
|
35,290
|
(110)
|
(407)
|
34,773
|
|
Less: Fuel sales
|
(3,233)
|
(80)
|
(3,313)
|
-
|
(3,313)
|
3
|
-
|
(3,310)
|
|
Sales
|
28,942
|
2,109
|
31,051
|
926
|
31,977
|
(107)
|
(407)
|
31,463
|
|
Adjusted operating profit
|
1,508
|
50
|
1,558
|
188
|
1,746
|
(3)
|
(94)
|
1,649
|
|
Adjusting items (Note 3)
|
(33)
|
-
|
(33)
|
(58)
|
(91)
|
-
|
54
|
(37)
|
|
Operating profit
|
1,475
|
50
|
1,525
|
130
|
1,655
|
(3)
|
(40)
|
1,612
|
|
Adjusted operating margin
|
4.7%
|
2.3%
|
4.5%
|
20.3%
|
4.9%
|
|
23.1%
|
4.7%
|
Tesco Bank segmental revenue of £926m (26 weeks
ended 26 August 2023: £702m) comprises continuing interest income
of £46m (26 weeks ended 26
August 2023: £41m), fees and commissions income of £132m (26 weeks
ended 26 August 2023: £90m), insurance revenue of £341m (26 weeks
ended 26 August 2023: £223m) and revenue within the discontinued
Banking operations of £407m (26 weeks ended 26 August 2023:
£348m).
|
26 weeks ended 24 August 2024
At actual exchange rates
|
UK &
ROI
£m
|
Central
Europe
£m
|
Total
Retail
£m
|
Tesco
Bank
£m
|
Total
segments
£m
|
Exclude:
Banking operations
£m
|
Continuing operations at actual exchange
£m
|
|
Revenue
|
32,149
|
2,105
|
34,254
|
926
|
35,180
|
(407)
|
34,773
|
|
Less: Fuel sales
|
(3,232)
|
(78)
|
(3,310)
|
-
|
(3,310)
|
-
|
(3,310)
|
|
Sales
|
28,917
|
2,027
|
30,944
|
926
|
31,870
|
(407)
|
31,463
|
|
Adjusted operating profit
|
1,506
|
49
|
1,555
|
188
|
1,743
|
(94)
|
1,649
|
|
Adjusting items (Note 3)
|
(33)
|
-
|
(33)
|
(58)
|
(91)
|
54
|
(37)
|
|
Operating profit
|
1,473
|
49
|
1,522
|
130
|
1,652
|
(40)
|
1,612
|
|
Adjusted operating margin
|
4.7%
|
2.3%
|
4.5%
|
20.3%
|
5.0%
|
23.1%
|
4.7%
|
|
Share of post-tax profit/(loss) of joint
ventures and associates
|
|
|
|
|
|
|
(2)
|
|
Finance income
|
|
|
|
|
|
|
132
|
|
Finance costs
|
|
|
|
|
|
|
(350)
|
|
Profit before tax
|
|
|
|
|
|
|
1,392
|
|
26 weeks ended 26 August 2023
At actual exchange rates
|
UK & ROI
£m
|
Central
Europe
£m
|
Total
Retail
£m
|
Tesco
Bank
£m
|
Total
segments
£m
|
Exclude:
Banking
operations*
£m
|
Continuing operations at
Actual
exchange*
£m
|
|
Revenue
|
31,226
|
2,221
|
33,447
|
702
|
34,149
|
(348)
|
33,801
|
|
Less: Fuel sales
|
(3,313)
|
(87)
|
(3,400)
|
-
|
(3,400)
|
-
|
(3,400)
|
|
Sales
|
27,913
|
2,134
|
30,047
|
702
|
30,749
|
(348)
|
30,401
|
|
Adjusted operating profit
|
1,371
|
46
|
1,417
|
65
|
1,482
|
(56)
|
1,426
|
|
Adjusting items (Note 3)
|
(16)
|
16
|
-
|
-
|
-
|
-
|
-
|
|
Operating profit
|
1,355
|
62
|
1,417
|
65
|
1,482
|
(56)
|
1,426
|
|
Adjusted operating margin
|
4.4%
|
2.1%
|
4.2%
|
9.3%
|
4.3%
|
16.1%
|
4.2%
|
|
Share of post-tax profit/(loss) of joint
ventures and associates
|
|
|
|
|
|
|
4
|
|
Finance income
|
|
|
|
|
|
|
131
|
|
Finance costs
|
|
|
|
|
|
|
(400)
|
|
Profit before tax
|
|
|
|
|
|
|
1,161
|
* Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
Balance sheet
The following tables show segment net assets
and net debt (cash and cash equivalents, short-term investments,
joint venture loans, bank and other borrowings, lease liabilities,
derivative financial instruments and net debt of the disposal
group). Lease liabilities, joint venture loans and interest
receivables have been allocated to each segment. All other
components of net debt are not allocated to segments, reflecting
how these balances are managed. Intercompany transactions have been
eliminated other than intercompany transactions with Tesco Bank in
net debt. Balances in relation to the discontinued Banking
operations have been included in the Tesco Bank segment for both
current and prior periods.
|
At 24 August 2024
|
UK & ROI
£m
|
Central
Europe
£m
|
Tesco Bank
£m
|
Unallocated
£m
|
Total
£m
|
|
Goodwill and other intangible assets
|
4,766
|
32
|
318
|
-
|
5,116
|
|
Property, plant and equipment and investment
property
|
15,651
|
1,449
|
59
|
-
|
17,159
|
|
Right of use assets
|
4,990
|
443
|
1
|
-
|
5,434
|
|
Non-current assets held for sale
|
39
|
62
|
-
|
-
|
101
|
|
Net assets of the disposal group excluding net
debt(a)
|
-
|
-
|
743
|
-
|
743
|
|
Net debt (including Tesco
Bank)(b)
|
(6,853)
|
(575)
|
740
|
(2,248)
|
(8,936)
|
|
Other net
assets/(liabilities)
|
(7,291)
|
(322)
|
(425)
|
-
|
(8,038)
|
|
Total net assets
|
11,302
|
1,089
|
1,436
|
(2,248)
|
11,579
|
(a) Excludes
£(171)m (24 February 2024: £(182)m, 26 August 2023: £nil) of net
debt items within the Tesco Bank segment relating to the Banking
operations disposal group.
(b) Refer to
Note 18.
|
At 24 February 2024
|
UK & ROI
£m
|
Central
Europe
£m
|
Tesco Bank
£m
|
Unallocated
£m
|
Total
£m
|
|
Goodwill and other intangible assets
|
4,713
|
33
|
320
|
-
|
5,066
|
|
Property, plant and equipment and investment
property
|
15,707
|
1,475
|
63
|
-
|
17,245
|
|
Right of use assets
|
5,038
|
439
|
1
|
-
|
5,478
|
|
Non-current assets held for sale
|
23
|
62
|
-
|
-
|
85
|
|
Net assets of the disposal group excluding net
debt(a)
|
-
|
-
|
758
|
-
|
758
|
|
Net debt (including Tesco
Bank)(b)
|
(6,926)
|
(575)
|
(102)
|
(2,263)
|
(9,866)
|
|
Other net
assets/(liabilities)
|
(7,101)
|
(300)
|
300
|
-
|
(7,101)
|
|
Total net assets
|
11,454
|
1,134
|
1,340
|
(2,263)
|
11,665
|
Refer to previous table for
footnotes.
|
At 26 August 2023
|
UK & ROI
£m
|
Central
Europe
£m
|
Tesco Bank
£m
|
Unallocated
£m
|
Total
£m
|
|
Goodwill and other intangible assets
|
4,715
|
34
|
618
|
-
|
5,367
|
|
Property, plant and equipment and investment
property
|
15,272
|
1,473
|
70
|
-
|
16,815
|
|
Right of use assets
|
5,073
|
439
|
10
|
-
|
5,522
|
|
Non-current assets
classified as held for sale
|
24
|
117
|
-
|
-
|
141
|
|
Net debt (including Tesco
Bank)(b)
|
(7,000)
|
(558)
|
127
|
(2,330)
|
(9,761)
|
|
Other net
assets/(liabilities)
|
(6,824)
|
(349)
|
1,146
|
-
|
(6,027)
|
|
Total net assets
|
11,260
|
1,156
|
1,971
|
(2,330)
|
12,057
|
Refer to previous table for
footnotes.
Other segment information
The tables below show the Group's total capital
expenditure, depreciation and amortisation, and impairment
(loss)/reversal on financial assets, reconciled to continuing
operations:
|
26 weeks ended 24 August 2024
|
UK & ROI
£m
|
Central
Europe
£m
|
Tesco
Bank
£m
|
Total
segments
£m
|
Exclude:
Banking operations
£m
|
Continuing operations
£m
|
|
Capital expenditure (including acquisitions
through business combinations):
|
|
|
|
|
|
|
|
Property, plant and
equipment(a)
|
395
|
28
|
-
|
423
|
-
|
423
|
|
Goodwill and other intangible
assets(b)
|
182
|
4
|
9
|
195
|
(6)
|
189
|
|
Depreciation and amortisation:
|
|
|
|
|
|
|
|
Property, plant and equipment
|
(413)
|
(42)
|
(4)
|
(459)
|
-
|
(459)
|
|
Right of use assets
|
(246)
|
(23)
|
-
|
(269)
|
-
|
(269)
|
|
Other intangible assets
|
(128)
|
(5)
|
(5)
|
(138)
|
-
|
(138)
|
|
Impairment(c):
|
|
|
|
|
|
|
|
(Loss)/reversal on financial assets
|
2
|
-
|
(15)
|
(13)
|
15
|
2
|
(a) Includes £1m (26 weeks
ended 26 August 2023: £nil) of property, plant and equipment
acquired through business combinations.
(b) Includes £56m (26 weeks
ended 26 August 2023: £nil) of goodwill and other intangible assets
acquired through business combinations.
(c) Excludes impairment of
other non-current assets.
|
26 weeks ended 26 August 2023
|
UK & ROI
£m
|
Central
Europe
£m
|
Tesco
Bank
£m
|
Total
segments
£m
|
Exclude:
Banking operations(d)
£m
|
Continuing
operations(d)
£m
|
|
Capital expenditure (including acquisitions
through business combinations):
|
|
|
|
|
|
|
|
Property, plant and
equipment(a)
|
381
|
38
|
3
|
422
|
(1)
|
421
|
|
Goodwill and other intangible
assets(b)
|
118
|
5
|
12
|
135
|
(12)
|
123
|
|
Depreciation and amortisation:
|
|
|
|
|
|
|
|
Property, plant and equipment
|
(397)
|
(42)
|
(5)
|
(444)
|
1
|
(443)
|
|
Right of use assets
|
(247)
|
(22)
|
(1)
|
(270)
|
1
|
(269)
|
|
Other intangible assets
|
(113)
|
(6)
|
(17)
|
(136)
|
14
|
(122)
|
|
Impairment(c):
|
|
|
|
|
|
|
|
(Loss)/reversal on financial assets
|
-
|
(1)
|
(33)
|
(34)
|
33
|
(1)
|
(a)-(c) Refer to previous table for
footnotes.
(d) Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
Cash flow statement
The following tables provide further analysis
of the Group cash flow statement, including a split of cash flows
between Retail continuing operations, and Tesco Bank continuing and
discontinued operations.
|
|
|
|
|
|
Tesco
Bank
|
|
|
|
|
Retail
|
|
Continuing
operations
|
Discontinued
operations
|
|
Tesco
Group
|
|
26 weeks ended 24 August 2024
|
Before adjusting
items
£m
|
Adjusting
items
£m
|
Retail
Total
£m
|
|
Before adjusting items
£m
|
Adjusting items
£m
|
Total
£m
|
Total
£m
|
|
Total
£m
|
|
Operating profit/(loss)
|
1,555
|
(33)
|
1,522
|
|
94
|
(4)
|
90
|
40
|
|
1,652
|
|
Depreciation and amortisation
|
819
|
38
|
857
|
|
9
|
-
|
9
|
-
|
|
866
|
|
ATM net income
|
(4)
|
-
|
(4)
|
|
4
|
-
|
4
|
-
|
|
-
|
|
(Profit)/loss arising on sale of property,
plant and equipment, investment property, intangible assets, assets
held for sale and early termination of leases
|
7
|
(10)
|
(3)
|
|
-
|
-
|
-
|
-
|
|
(3)
|
|
Net remeasurement (gain)/loss on non-current
assets held for sale
|
-
|
-
|
-
|
|
-
|
-
|
-
|
44
|
|
44
|
|
Defined benefit pension scheme
payments
|
(14)
|
-
|
(14)
|
|
-
|
-
|
-
|
-
|
|
(14)
|
|
Share-based payments
|
19
|
-
|
19
|
|
(2)
|
-
|
(2)
|
2
|
|
19
|
|
Fair value movements included in operating
profit/(loss)
|
-
|
-
|
-
|
|
(3)
|
-
|
(3)
|
13
|
|
10
|
|
Cash flows generated from/(used in) operations
excluding working capital
|
2,382
|
(5)
|
2,377
|
|
102
|
(4)
|
98
|
99
|
|
2,574
|
|
(Increase)/decrease in working
capital
|
169
|
(47)
|
122
|
|
(128)
|
4
|
(124)
|
41
|
|
39
|
|
Cash generated from/(used in)
operations
|
2,551
|
(52)
|
2,499
|
|
(26)
|
-
|
(26)
|
140
|
|
2,613
|
|
Interest paid
|
(380)
|
-
|
(380)
|
|
(8)
|
-
|
(8)
|
(1)
|
|
(389)
|
|
Corporation tax paid
|
(176)
|
-
|
(176)
|
|
(5)
|
-
|
(5)
|
-
|
|
(181)
|
|
Net cash generated from/(used in) operating
activities*
|
1,995
|
(52)
|
1,943
|
|
(39)
|
-
|
(39)
|
139
|
|
2,043
|
|
Proceeds from sale of property, plant and
equipment, investment property, intangible assets and assets
classified as held for sale
|
1
|
15
|
16
|
|
-
|
-
|
-
|
-
|
|
16
|
|
Purchase of property, plant and equipment,
investment property and other long-term assets - property buybacks
and store purchases
|
(16)
|
-
|
(16)
|
|
-
|
-
|
-
|
-
|
|
(16)
|
|
Purchase of property, plant and equipment,
investment property and other long-term assets - other capital
expenditure
|
(464)
|
-
|
(464)
|
|
-
|
-
|
-
|
-
|
|
(464)
|
|
Purchase of intangible assets
|
(130)
|
-
|
(130)
|
|
(5)
|
-
|
(5)
|
(6)
|
|
(141)
|
|
Acquisition of subsidiaries, net of cash
acquired
|
(46)
|
-
|
(46)
|
|
-
|
-
|
-
|
-
|
|
(46)
|
|
Investments in joint ventures and
associates
|
(6)
|
-
|
(6)
|
|
-
|
-
|
-
|
-
|
|
(6)
|
|
Decrease in short-term investments
|
1,180
|
-
|
1,180
|
|
-
|
-
|
-
|
-
|
|
1,180
|
|
Increase in short-term investments
|
(964)
|
-
|
(964)
|
|
-
|
-
|
-
|
-
|
|
(964)
|
|
Proceeds from sale of other
investments
|
2
|
-
|
2
|
|
864
|
-
|
864
|
-
|
|
866
|
|
Purchase of other investments
|
-
|
-
|
-
|
|
(91)
|
-
|
(91)
|
-
|
|
(91)
|
|
Dividends received from joint ventures and
associates
|
2
|
-
|
2
|
|
-
|
-
|
-
|
-
|
|
2
|
|
Interest received
|
136
|
-
|
136
|
|
-
|
-
|
-
|
-
|
|
136
|
|
Cash inflows from derivative financial
instruments
|
-
|
-
|
-
|
|
27
|
-
|
27
|
-
|
|
27
|
|
Net cash generated from/(used in) investing
activities*
|
(305)
|
15
|
(290)
|
|
795
|
-
|
795
|
(6)
|
|
499
|
|
Own shares purchased for
cancellation
|
(575)
|
-
|
(575)
|
|
-
|
-
|
-
|
-
|
|
(575)
|
|
Own shares purchased for share schemes, net of
cash received from employees
|
17
|
-
|
17
|
|
-
|
-
|
-
|
-
|
|
17
|
|
Repayment of capital element of obligations
under leases
|
(295)
|
-
|
(295)
|
|
(1)
|
-
|
(1)
|
(1)
|
|
(297)
|
|
Cash outflows exceeding the incremental
increase in assets in a property buyback
|
(14)
|
-
|
(14)
|
|
-
|
-
|
-
|
-
|
|
(14)
|
|
Increase in borrowings
|
342
|
-
|
342
|
|
-
|
-
|
-
|
-
|
|
342
|
|
Repayment of borrowings
|
(476)
|
-
|
(476)
|
|
(146)
|
-
|
(146)
|
-
|
|
(622)
|
|
Cash inflows from derivative financial
instruments
|
437
|
-
|
437
|
|
1
|
-
|
1
|
-
|
|
438
|
|
Cash outflows from derivative financial
instruments
|
(404)
|
-
|
(404)
|
|
-
|
-
|
-
|
-
|
|
(404)
|
|
Dividends paid to equity holders
|
(575)
|
-
|
(575)
|
|
-
|
-
|
-
|
-
|
|
(575)
|
|
Net cash generated from/(used in) financing
activities*
|
(1,543)
|
-
|
(1,543)
|
|
(146)
|
-
|
(146)
|
(1)
|
|
(1,690)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash
equivalents
|
147
|
(37)
|
110
|
|
610
|
-
|
610
|
132
|
|
852
|
|
Cash and cash equivalents at the beginning of
the period
|
|
|
|
|
|
|
|
|
|
1,874
|
|
Effect of foreign exchange rate
changes
|
|
|
|
|
|
|
|
|
|
(8)
|
|
Cash and cash equivalents, including cash held
in the disposal group, at the end of the period
|
|
|
|
|
|
|
|
|
|
2,718
|
|
Less: Cash held in the disposal
group
|
|
|
|
|
|
|
|
|
|
(381)
|
|
Cash and cash equivalents at the end of the
period
|
|
|
|
|
|
|
|
|
|
2,337
|
* Refer
to page 47 for the reconciliation of the APM: Retail free cash
flow.
|
|
|
|
Tesco
Bank (restated)(a)
|
|
|
|
|
|
Retail
|
|
Continuing
operations
|
Discontinued operations
|
|
Total
|
|
26 weeks ended 26 August
2023
|
Before adjusting
items
£m
|
Adjusting
items
£m
|
Total
£m
|
|
Before adjusting items
£m
|
Adjusting items
£m
|
Total
£m
|
Total
£m
|
|
Total
£m
|
|
Operating profit/(loss)
|
1,417
|
-
|
1,417
|
|
9
|
-
|
9
|
56
|
|
1,482
|
|
Depreciation and amortisation
|
790
|
37
|
827
|
|
7
|
-
|
7
|
16
|
|
850
|
|
ATM net income
|
(5)
|
-
|
(5)
|
|
5
|
-
|
5
|
-
|
|
-
|
|
(Profit)/loss arising on sale of property,
plant and equipment, investment property, intangible assets, assets
held for sale and early termination of leases
|
10
|
(8)
|
2
|
|
-
|
-
|
-
|
-
|
|
2
|
|
(Profit)/loss arising on sale of
subsidiaries
|
-
|
(12)
|
(12)
|
|
-
|
-
|
-
|
-
|
|
(12)
|
|
Net remeasurement (gain)/loss on non-current
assets held for sale
|
-
|
(16)
|
(16)
|
|
-
|
-
|
-
|
-
|
|
(16)
|
|
Defined benefit pension scheme
payments
|
(13)
|
-
|
(13)
|
|
-
|
-
|
-
|
-
|
|
(13)
|
|
Share-based payments
|
13
|
-
|
13
|
|
(2)
|
-
|
(2)
|
2
|
|
13
|
|
Fair value movements included in operating
profit/(loss)
|
-
|
-
|
-
|
|
7
|
-
|
7
|
31
|
|
38
|
|
Cash flows generated from operations excluding
working capital
|
2,212
|
1
|
2,213
|
|
26
|
-
|
26
|
105
|
|
2,344
|
|
(Increase)/decrease in working
capital
|
368
|
(88)
|
280
|
|
52
|
(1)
|
51
|
76
|
|
407
|
|
Cash generated from/(used in)
operations
|
2,580
|
(87)
|
2,493
|
|
78
|
(1)
|
77
|
181
|
|
2,751
|
|
Interest paid
|
(387)
|
-
|
(387)
|
|
(7)
|
-
|
(7)
|
-
|
|
(394)
|
|
Corporation tax paid
|
(38)
|
-
|
(38)
|
|
(7)
|
-
|
(7)
|
-
|
|
(45)
|
|
Net cash generated from/(used in) operating
activities(b)
|
2,155
|
(87)
|
2,068
|
|
64
|
(1)
|
63
|
181
|
|
2,312
|
|
Proceeds from sale of property, plant and
equipment, investment property, intangible assets and assets
classified as held for sale
|
2
|
32
|
34
|
|
-
|
-
|
-
|
-
|
|
34
|
|
Purchase of property, plant and equipment,
investment property and other long-term assets - property buybacks
and store purchases
|
(22)
|
-
|
(22)
|
|
-
|
-
|
-
|
-
|
|
(22)
|
|
Purchase of property, plant and equipment,
investment property and other long-term assets - other capital
expenditure
|
(472)
|
-
|
(472)
|
|
(4)
|
-
|
(4)
|
(1)
|
|
(477)
|
|
Purchase of intangible assets
|
(123)
|
-
|
(123)
|
|
(2)
|
-
|
(2)
|
(13)
|
|
(138)
|
|
Disposal of subsidiaries, net of cash
disposed
|
-
|
15
|
15
|
|
-
|
-
|
-
|
-
|
|
15
|
|
Investments in joint ventures and
associates
|
(5)
|
-
|
(5)
|
|
-
|
-
|
-
|
-
|
|
(5)
|
|
Decrease in short-term
investments(c)
|
725
|
-
|
725
|
|
-
|
-
|
-
|
-
|
|
725
|
|
Increase in short-term
investments(c)
|
(1,801)
|
-
|
(1,801)
|
|
-
|
-
|
-
|
-
|
|
(1,801)
|
|
Proceeds from sale of other
investments
|
2
|
-
|
2
|
|
81
|
-
|
81
|
-
|
|
83
|
|
Purchase of other investments
|
(5)
|
-
|
(5)
|
|
(82)
|
-
|
(82)
|
-
|
|
(87)
|
|
Dividends received from joint ventures and
associates
|
6
|
-
|
6
|
|
-
|
-
|
-
|
-
|
|
6
|
|
Special dividend received from Tesco
Bank
|
250
|
-
|
250
|
|
(250)
|
-
|
(250)
|
-
|
|
-
|
|
Interest received
|
114
|
-
|
114
|
|
-
|
-
|
-
|
-
|
|
114
|
|
Cash inflows from derivative financial
instruments
|
3
|
-
|
3
|
|
-
|
-
|
-
|
-
|
|
3
|
|
Cash outflows from derivative financial
instruments
|
(15)
|
-
|
(15)
|
|
-
|
-
|
-
|
-
|
|
(15)
|
|
Net cash generated from/(used in) investing
activities(b)
|
(1,341)
|
47
|
(1,294)
|
|
(257)
|
-
|
(257)
|
(14)
|
|
(1,565)
|
|
Own shares purchased for
cancellation
|
(503)
|
-
|
(503)
|
|
-
|
-
|
-
|
-
|
|
(503)
|
|
Own shares purchased for share schemes, net of
cash received from employees
|
(6)
|
-
|
(6)
|
|
-
|
-
|
-
|
-
|
|
(6)
|
|
Repayment of capital element of obligations
under leases
|
(306)
|
-
|
(306)
|
|
(1)
|
-
|
(1)
|
(1)
|
|
(308)
|
|
Cash outflows exceeding the incremental
increase in assets in a property buyback
|
(15)
|
-
|
(15)
|
|
-
|
-
|
-
|
-
|
|
(15)
|
|
Increase in borrowings
|
682
|
-
|
682
|
|
-
|
-
|
-
|
300
|
|
982
|
|
Repayment of borrowings
|
(97)
|
-
|
(97)
|
|
-
|
-
|
-
|
-
|
|
(97)
|
|
Cash inflows from derivative financial
instruments
|
68
|
-
|
68
|
|
-
|
-
|
-
|
-
|
|
68
|
|
Cash outflows from derivative financial
instruments
|
(66)
|
-
|
(66)
|
|
-
|
-
|
-
|
-
|
|
(66)
|
|
Dividends paid to equity holders
|
(509)
|
-
|
(509)
|
|
-
|
-
|
-
|
-
|
|
(509)
|
|
Net cash generated from/(used in) financing
activities(b)
|
(752)
|
-
|
(752)
|
|
(1)
|
-
|
(1)
|
299
|
|
(454)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash
equivalents
|
62
|
(40)
|
22
|
|
(194)
|
(1)
|
(195)
|
466
|
|
293
|
|
Cash and cash equivalents at the beginning of
the period
|
|
|
|
|
|
|
|
|
|
1,565
|
|
Effect of foreign exchange rate
changes
|
|
|
|
|
|
|
|
|
|
(9)
|
|
Cash and cash equivalents at the end of the
period
|
|
|
|
|
|
|
|
|
|
1,849
|
(a) Comparatives have been re-presented
to disclose Banking operations as a discontinued operation. Refer
to Note 6.
(b) Refer to page 47 for the
reconciliation of the APM: Retail free cash flow.
(c) Comparative net (investments
in)/proceeds from sale of short-term investments has been
re-presented on a gross basis as increase and decrease in
short-term investments.
Note 3 Adjusting items
Group income statement
Profit/(loss) for the period included the
following adjusting items:
|
26 weeks ended 24 August
2024
|
Cost of sales
£m
|
Administrative expenses
£m
|
Total adjusting items included
within operating profit
£m
|
Finance income/
(costs)
£m
|
Taxation
£m
|
Adjusting items included within
discontinued operations
£m
|
Total adjusting items
£m
|
|
Property transactions(a)
|
-
|
7
|
7
|
-
|
(1)
|
-
|
6
|
|
Restructuring(b)
|
(3)
|
-
|
(3)
|
-
|
1
|
-
|
(2)
|
|
Amortisation of acquired intangible
assets(c)
|
-
|
(38)
|
(38)
|
-
|
9
|
-
|
(29)
|
|
Banking operations disposal
costs(d)
|
(2)
|
(1)
|
(3)
|
-
|
1
|
-
|
(2)
|
|
Net pension finance
income/(costs)(e)
|
-
|
-
|
-
|
(15)
|
4
|
-
|
(11)
|
|
Fair value remeasurements of financial
instruments(e)
|
-
|
-
|
-
|
66
|
(16)
|
-
|
50
|
|
Total adjusting items from continuing
operations
|
(5)
|
(32)
|
(37)
|
51
|
(2)
|
-
|
12
|
|
Adjusting items relating to discontinued
operations(f)
|
-
|
-
|
-
|
-
|
-
|
(41)
|
(41)
|
|
Total
|
(5)
|
(32)
|
(37)
|
51
|
(2)
|
(41)
|
(29)
|
(a) Predominantly relates
to the disposal of surplus properties that generated a profit
before tax of £10m (26 weeks
ended 26 August 2023: £8m).
(b) Provisions
relating to operational restructuring changes announced as part of
'Save to Invest', a multi-year programme which commenced in June
2022. The total cost of the programme to date is £(235)m.
Future cost savings will not be reported within adjusting
items.
(c) Amortisation of acquired intangibles
relates to historical inorganic business combinations and does not
reflect the Group's ongoing trading performance.
(d) Costs
incurred within the continuing Group in relation to the sale of
Banking operations.
(e) Net pension finance costs and fair value remeasurements of
financial instruments are included within adjusting items, as they
can fluctuate significantly due to external market factors that are
outside management's control. Refer to Note 4 for details of
finance income and costs.
(f) Refer to Note 6.
|
26 weeks ended 26 August
2023
|
Cost of sales
£m
|
Administrative expenses
£m
|
Total adjusting items included
within operating profit
£m
|
Finance income/ (costs)
£m
|
Taxation
£m
|
Adjusting items included within
discontinued operations
£m
|
Total adjusting items
£m
|
|
Property transactions
|
2
|
22
|
24
|
-
|
(4)
|
-
|
20
|
|
Restructuring
|
3
|
(2)
|
1
|
-
|
-
|
-
|
1
|
|
Amortisation of acquired intangible
assets
|
-
|
(37)
|
(37)
|
-
|
9
|
-
|
(28)
|
|
Net pension finance
income/(costs)
|
-
|
-
|
-
|
(10)
|
2
|
-
|
(8)
|
|
Fair value remeasurements of financial
instruments
|
-
|
-
|
-
|
28
|
(7)
|
-
|
21
|
|
Disposal of China associate in a prior
period
|
-
|
-
|
-
|
-
|
23
|
-
|
23
|
|
Disposal of subsidiary
|
-
|
12
|
12
|
-
|
-
|
-
|
12
|
|
Total adjusting items from continuing
operations
|
5
|
(5)
|
-
|
18
|
23
|
-
|
41
|
|
Adjusting items relating to
discontinued operations
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total
|
5
|
(5)
|
-
|
18
|
23
|
-
|
41
|
Group cash flow statement
The table below shows the impact of adjusting
items from continuing operations on the Group cash flow statement.
There were no adjusting cash flows related to discontinued
operations in the current and comparative periods:
|
|
Cash
flows from
operating activities
|
|
Cash
flows from
investing activities
|
|
Cash
flows from
financing activities
|
|
|
26
weeks
2024
£m
|
26
weeks
2023
£m
|
|
26
weeks
2024
£m
|
26
weeks
2023
£m
|
|
26
weeks
2024
£m
|
26
weeks
2023
£m
|
|
Property
transactions(a)
|
-
|
-
|
|
15
|
32
|
|
-
|
-
|
|
Disposal of
subsidiaries(b)
|
-
|
-
|
|
-
|
15
|
|
-
|
-
|
|
Restructuring(c)
|
(52)
|
(88)
|
|
-
|
-
|
|
-
|
-
|
|
Total adjusting items from continuing
operations
|
(52)
|
(88)
|
|
15
|
47
|
|
-
|
-
|
(a) Property transactions include £2m
proceeds (26 weeks ended 26 August 2023: £14m) relating to the sale
of stores in Poland in 2021 not included in the sale of the
corporate business.
(b) In the prior period the Group
disposed of its Booker subsidiary Ritter-Courivaud Limited, part of
the UK & ROI segment.
(c) Cash outflows predominantly relating
to operational restructuring changes as part of the multi-year
'Save to Invest' programme, which commenced in June
2022.
Note 4 Finance income and costs
|
Continuing operations
|
Notes
|
26 weeks
2024
£m
|
26 weeks
2023
£m
|
|
Finance income
|
|
|
|
|
Interest and similar income
|
|
124
|
123
|
|
Interest income on other investments
|
|
6
|
6
|
|
Finance income on net investment in
leases
|
|
1
|
1
|
|
Finance income from reinsurance
contracts held
|
|
1
|
1
|
|
Total finance income
|
|
132
|
131
|
|
Finance costs
|
|
|
|
|
GBP MTNs and loans
|
|
(102)
|
(96)
|
|
EUR MTNs
|
|
(46)
|
(55)
|
|
USD bonds
|
|
(9)
|
(9)
|
|
Interest expense on lease
liabilities
|
|
(186)
|
(183)
|
|
Finance expenses from insurance
contracts issued
|
|
(7)
|
(5)
|
|
Other interest costs
|
|
(51)
|
(70)
|
|
Total finance costs before
adjusting items
|
|
(401)
|
(418)
|
|
Fair value remeasurements of
financial instruments
|
|
66
|
28
|
|
Net pension finance
costs
|
16
|
(15)
|
(10)
|
|
Total finance costs
|
|
(350)
|
(400)
|
|
Net finance costs
|
|
(218)
|
(269)
|
Note 5 Taxation
Recognised in the Group income
statement
|
Continuing operations
|
26 weeks
2024
£m
|
26 weeks
2023
(restated*)
£m
|
|
Current tax charge
|
|
|
|
UK corporation tax
|
256
|
171
|
|
Overseas tax
|
39
|
35
|
|
|
295
|
206
|
|
Deferred tax charge
|
|
|
|
Origination and reversal of temporary
differences
|
75
|
68
|
|
|
75
|
68
|
|
Total income tax charge
|
370
|
274
|
|
|
|
|
|
Analysed as:
|
|
|
|
Tax charge/(credit) on adjusted
profit
|
368
|
297
|
|
Tax charge/(credit) on adjusting
items
|
2
|
(23)
|
|
Total income tax charge
|
370
|
274
|
|
|
|
|
|
Effective tax rate
|
26.6%
|
23.6%
|
|
Adjusted effective tax rate
|
26.7%
|
26.0%
|
* Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
The tax charge in the Group income
statement is based on management's best estimate of the full year
effective tax rates by geographical unit applied to half year
profits, which is then adjusted for tax on adjusting items arising
in the period to 24 August 2024. The statutory rate of corporation
tax has been applied to the adjusting items, based on the
geographical unit of that item. Refer to Note 3 for further
details.
The Group is within the scope of the
Organisation for Economic Co-operation and Development (OECD)
Pillar Two model rules. Pillar Two legislation has been enacted in
the UK introducing a global minimum effective tax rate of 15%. The
legislation implements a domestic top-up tax and a multinational
top-up tax, effective for accounting periods starting on or after
31 December 2023. The Group has applied the exception under IAS 12
to recognising and disclosing information about deferred tax assets
and liabilities related to top-up income taxes. Under the
legislation, the Group is liable to pay a top-up tax for the
difference between its effective tax rate per jurisdiction and the
15% minimum rate. The Group has performed an assessment of the
potential exposure to Pillar Two income taxes and there is not
expected to be a material impact on the Group's tax
charge.
Note 6 Discontinued
operations
The following table presents a breakdown of the
assets and liabilities of the disposal group and non-current assets
classified as held for sale.
|
|
24 August
2024
|
24 February
2024
|
26 August 2023
|
|
|
Banking operations
£m
|
Other
£m
|
Total
£m
|
Banking operations
£m
|
Other
£m
|
Total
£m
|
Total
£m
|
|
Assets of the disposal group
|
8,084
|
-
|
8,084
|
7,698
|
-
|
7,698
|
-
|
|
Non-current assets
classified as held for sale*
|
-
|
101
|
101
|
-
|
85
|
85
|
141
|
|
Total assets of the disposal group and
non-current assets classified as
held for sale
|
8,084
|
101
|
8,185
|
7,698
|
85
|
7,783
|
141
|
|
Liabilities of the disposal group
|
(7,512)
|
-
|
(7,512)
|
(7,122)
|
-
|
(7,122)
|
-
|
|
Total net assets of the disposal group
and non-current assets
classified as held for sale
|
572
|
101
|
673
|
576
|
85
|
661
|
141
|
* Other non-current assets
classified as held for sale consist mainly of properties in the UK
and Central Europe (24 February 2024: UK and
Central Europe, 26 August 2023: Central Europe) due to be
sold within one year. Due to the individual nature of each
property, fair values are classified as Level 3 within the fair
value hierarchy.
Disposal of Banking operations
In February 2024, the Group reached agreement
on the terms of a proposed sale of its banking operations,
comprising personal loans, credit cards, customer deposits, and
associated operational capabilities ('Banking operations') for
consideration of £600m. The sale is subject to regulatory approval
and is expected to complete by the end of this calendar
year.
The related assets and liabilities have been
classified as held for sale in the Banking operations disposal
group within the Tesco Bank segment, with Group results for the 26
weeks ended 26 August 2023 re-presented to present Banking
operations as a discontinued operation.
Balance sheet of the disposal group
The following table presents a breakdown of the
assets and liabilities of the Banking operations disposal
group:
|
|
24 August 2024
£m
|
24 February 2024
£m
|
|
Loans and advances to customers
|
8,036
|
7,669
|
|
Derivative financial instruments
|
34
|
54
|
|
Trade and other receivables
|
89
|
47
|
|
Cash and cash equivalents
|
381
|
346
|
|
Excess loss on remeasurement of the disposal
group
|
(456)
|
(418)
|
|
Assets of the disposal group classified as held
for sale
|
8,084
|
7,698
|
|
|
|
|
|
Trade and other payables
|
(63)
|
(81)
|
|
Borrowings
|
(550)
|
(549)
|
|
Provisions
|
(20)
|
(19)
|
|
Lease liabilities
|
(16)
|
(17)
|
|
Deposits from customers
|
(6,843)
|
(6,440)
|
|
Derivative financial instruments
|
(20)
|
(16)
|
|
Liabilities of the disposal group classified as
held for sale
|
(7,512)
|
(7,122)
|
Upon classification as held for
sale in February 2024,
the Group recognised a loss on remeasuring the disposal group to
fair value less costs to sell. The loss was allocated to goodwill and other
assets of the disposal group within the scope of the measurement
requirements of IFRS 5, which were fully written off. The excess
loss remaining was recognised as a reduction in the total
assets of the disposal group, which primarily comprise
loans and advances to customers measured under
IFRS 9. Since the classification of the disposal group as held for
sale at February 2024, this excess loss has increased by £38m to
reflect the latest fair value less costs to sell.
Income statement of discontinued
operations
|
|
26 weeks ended
24 August 2024
|
|
26 weeks ended
26 August
2023(a)
|
|
|
£m
|
|
£m
|
|
Revenue
|
407
|
|
348
|
|
Operating costs
|
(313)
|
|
(292)
|
|
Adjusted operating profit/(loss)
|
94
|
|
56
|
|
Adjusted finance (costs)/income
|
(1)
|
|
-
|
|
Adjusted profit/(loss) before tax
|
93
|
|
56
|
|
Taxation
|
(23)
|
|
(14)
|
|
Adjusted profit/(loss) after tax
|
70
|
|
42
|
|
Fair value remeasurement of assets of the
disposal group(b)
|
(44)
|
|
-
|
|
Other adjusting items(c)
|
(10)
|
|
-
|
|
Tax on adjusting items
|
13
|
|
-
|
|
Total adjusting items
|
(41)
|
|
-
|
|
Total profit/(loss) after tax of discontinued
operations
|
29
|
|
42
|
(a) Comparatives have been
re-presented to disclose Banking operations as a discontinued
operation.
(b) Fair value remeasurement of assets
of the disposal group includes £(6)m remeasurements on non-current
assets and £(38)m loss in excess of the carrying amount of the
non-current assets.
(c) Other
adjusting items relate to programme costs in order to separate
Banking operations from the remaining business of Tesco Bank,
including professional fees, legal fees, consultancy fees and
technology build costs.
Cash flow statement of discontinued
operations
|
|
26 weeks ended
24 August 2024
|
|
26 weeks ended
26 August 2023
|
|
|
£m
|
|
£m
|
|
Net cash flows from operating
activities
|
139
|
|
181
|
|
Net cash flows from investing
activities
|
(6)
|
|
(14)
|
|
Net cash flows from financing
activities
|
(1)
|
|
299
|
|
Net cash flows from discontinued
operations
|
132
|
|
466
|
Expected credit losses (ECLs) of the Banking
operations disposal group
The Banking operations disposal group has
specific risks in relation to ECLs on loans and advances to
customers. The financial risk for ECLs is that a retail customer or
counterparty to a wholesale transaction will fail to meet its
obligations in accordance with contractually agreed terms and Tesco
Bank will incur losses as a result.
The ECLs calculation and the
measurement of significant deterioration in credit risk both
incorporate forward-looking information using a range of
macroeconomic scenarios, with key variables being the Bank of
England base rate, unemployment rate and gross domestic
product.
There are four scenarios
commissioned from a third-party provider:
|
Scenario
|
Scenario assumptions
|
Weighting (%)
|
|
Base
|
Base rate drops to a little below
5% by end-2024. Unemployment expected to remain around 4.5% through
2025 before reducing back towards 4.0% over the remaining years of
the forecast. Growth strengthens in 2025 as interest rates drop
back and consumer demand rises.
|
40%
|
|
Upside
|
Geopolitical tensions begin to
diminish and increased oil and gas supply to Europe causes energy
prices to drop back (oil to below $70 a barrel, quarterly average).
Inflation falls below the 2% target. Base rate falls more quickly,
with commensurate increases in business confidence which supports
job hiring. Growth is predicted to be at pre-pandemic levels in
2024, accelerating to 3.4% in 2025.
|
30%
|
|
Downside 1
|
Disruption to energy supplies and
commodities from geopolitical tensions drive wholesale price rises
that are passed on to consumers and cause higher inflation. Base
rate peaks at 6.25% in 2024 and unemployment rises to 5.8% in early
2025. Economic contraction until mid-2025.
|
25%
|
|
Downside 2
|
Similar to Downside 1, but
inflation remains above target until mid-2028, Sterling depreciates
more markedly against the Dollar. Base rates reach 7.75% in early
2025 and unemployment peaks at 7.5% in early 2025 (remaining above
6% until end-2028). Growth declines in 2024 and 2025 before
stabilising in 2026.
|
5%
|
The economic scenarios used include the
following ranges of key indicators:
|
As at 24 August 2024 (five-year
average)
|
Base
40%
|
Upside
30%
|
Downside 1
25%
|
Downside 2
5%
|
|
Bank of England base
rate(a)
|
3.8%
|
3.2%
|
4.8%
|
6.1%
|
|
Gross domestic product(b)
|
1.8%
|
2.3%
|
1.3%
|
0.7%
|
|
Unemployment rate
|
4.3%
|
4.0%
|
5.2%
|
6.5%
|
|
Unemployment rate peak in year
|
4.4%
|
4.1%
|
5.5%
|
7.0%
|
|
|
|
|
|
|
|
As at 24 February 2024 (five-year
average)
|
Base
40%
|
Upside
30%
|
Downside 1
25%
|
Downside 2
5%
|
|
Bank of England base
rate(a)
|
4.1%
|
3.5%
|
5.4%
|
7.2%
|
|
Gross domestic product(b)
|
1.5%
|
2.0%
|
0.8%
|
0.1%
|
|
Unemployment rate
|
4.4%
|
4.0%
|
5.5%
|
7.2%
|
|
Unemployment rate peak in year
|
4.4%
|
4.0%
|
5.7%
|
7.5%
|
|
|
|
|
|
|
|
As at 26 August 2023 (five-year
average)
|
Base
40%
|
Upside
30%
|
Downside 1
25%
|
Downside 2
5%
|
|
Bank of England base
rate(a)
|
4.7%
|
3.8%
|
5.8%
|
7.2%
|
|
Gross domestic product(b)
|
1.2%
|
1.7%
|
0.6%
|
0.1%
|
|
Unemployment rate
|
4.2%
|
3.9%
|
5.1%
|
6.5%
|
|
Unemployment rate peak in year
|
4.3%
|
3.9%
|
5.3%
|
6.8%
|
(a) Simple average.
(b) Annual growth rates.
Key assumptions and sensitivity
The key assumptions to which the Tesco Bank ECL
is most sensitive are macroeconomic factors, probability of default
(PD), loss given default (LGD), PD threshold (staging), and
expected lifetime (revolving credit facilities). The table below
sets out the changes in the ECL allowance that would arise from
reasonably possible changes in these assumptions from those used in
the ECL allowance calculations as at 24 August 2024 and excludes
specific management overlays which are discussed further
below:
|
|
|
Impact on the loss
allowance
|
|
Key assumption
|
Reasonably possible
change
|
24 August
2024
£m
|
24 February 2024
£m
|
26 August
2023
£m
|
|
Closing ECL allowance
|
|
395
|
433
|
452
|
|
Macroeconomic factors (100%
weighted)
|
Upside scenario
|
(33)
|
(42)
|
(37)
|
|
|
Base scenario
|
(15)
|
(20)
|
(11)
|
|
|
Downside scenario 1
|
41
|
55
|
40
|
|
|
Downside scenario 2
|
127
|
170
|
110
|
|
Probability of default
|
Increase of 10%
|
29
|
30
|
33
|
|
|
Decrease of 10%
|
(29)
|
(29)
|
(32)
|
|
Loss given default
|
Increase of 2.5%
|
10
|
10
|
10
|
|
|
Decrease of 2.5%
|
(10)
|
(10)
|
(10)
|
|
Probability of default threshold
(staging)
|
Increase of 20%
|
(7)
|
(8)
|
(8)
|
|
|
Decrease of 20%
|
11
|
13
|
13
|
|
Expected lifetime (revolving credit
facility)
|
Increase of 1 year
|
4
|
4
|
4
|
|
|
Decrease of 1 year
|
(5)
|
(5)
|
(6)
|
In previous periods, certain specific
management overlays have been recognised to address an increased
downside risk from a high inflationary environment, the high cost
of borrowing and the cost-of-living crisis. With the reduction to
inflation since February 2024, the management overlay for cost of
living has been removed as the risk is now adequately captured in
the underlying portfolio.
The specific management overlay recognised to
address the prevailing downside risks and ensure the potential
impacts of future stress are adequately provided for, is detailed
below.
|
Overlay
|
Description of
adjustment
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Underestimation risk
|
Risk that the beneficial impact of recent
credit loss trends incorporated into credit risk models are
transitive and may reverse due to the uncertain economic
climate
|
7
|
8
|
56
|
|
Cost of living
|
A portion of Tesco Bank's customers may be more
impacted by cost-of-living pressures, with deterioration in their
ability to repay unsecured lending balances
|
-
|
20
|
20
|
|
Total overlays
|
|
7
|
28
|
76
|
Movements in the management overlays above also
reflect incorporation over time of the identified risks into the
modelled scenarios.
Note 7 Dividends
|
|
26 weeks ended 24 August
2024
|
|
26 weeks ended 26 August
2023
|
|
|
Pence/share
|
£m
|
|
Pence/share
|
£m
|
|
Amounts recognised through equity as
distributions to owners:
|
|
|
|
|
|
|
Paid prior financial year final
dividend*
|
8.25
|
576
|
|
7.05
|
510
|
|
(Increase)/decrease in unclaimed
dividends
|
-
|
(1)
|
|
-
|
(1)
|
|
Dividends paid in the financial
period
|
|
575
|
|
|
509
|
|
|
|
|
|
|
|
|
Interim dividend declared for the current
period
|
4.25
|
291
|
|
3.85
|
274
|
* Excludes £5m prior financial year final dividend
waived (26 August 2023: £6m).
The interim dividend was approved by the Board
of Directors on 2 October 2024. It will be paid on 22 November 2024
to shareholders who are on the Register of members at close of
business on 11 October 2024.
A dividend reinvestment plan (DRIP) is
available to shareholders who would prefer to invest their
dividends in the shares of the Company. For those shareholders
electing to receive the DRIP, the last date for receipt of a new
election is 1 November 2024.
Note 8 Earnings/(losses) per share and diluted
earnings/(losses) per
share
|
|
26 weeks ended 24 August
2024
|
|
26 weeks ended 26 August 2023
(restated(a))
|
|
|
Basic
|
Dilutive share
options and awards
|
Diluted
|
|
Basic
|
Dilutive share
options and awards
|
Diluted
|
|
Profit/(loss) (£m)
|
|
|
|
|
|
|
|
|
Continuing operations(b)
|
1,022
|
-
|
1,022
|
|
885
|
-
|
885
|
|
Discontinued operations
|
29
|
-
|
29
|
|
42
|
-
|
42
|
|
Total
|
1,051
|
-
|
1,051
|
|
927
|
-
|
927
|
|
Weighted average number of shares
(millions)
|
6,922
|
70
|
6,992
|
|
7,172
|
54
|
7,226
|
|
|
|
|
|
|
|
|
|
|
Earnings/(losses) per share (pence)
|
|
|
|
|
|
|
|
|
Continuing operations
|
14.76
|
(0.14)
|
14.62
|
|
12.34
|
(0.09)
|
12.25
|
|
Discontinued operations
|
0.42
|
(0.01)
|
0.41
|
|
0.59
|
(0.01)
|
0.58
|
|
Total
|
15.18
|
(0.15)
|
15.03
|
|
12.93
|
(0.10)
|
12.83
|
(a) Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
(b) Excludes profits attributable to
non-controlling interests of £nil
(26 weeks ended 26 August 2023: £2m).
APM: Adjusted diluted earnings per
share
|
Continuing
operations
|
Notes
|
26 weeks
2024
|
26 weeks
2023
(restated(a))
|
|
Profit before tax (£m)
|
|
1,392
|
1,161
|
|
Exclude: Adjusting items (£m)
|
3
|
(14)
|
(18)
|
|
Adjusted profit before tax (£m)
|
|
1,378
|
1,143
|
|
Adjusted profit before tax attributable to the
owners of the parent (£m)(b)
|
|
1,378
|
1,141
|
|
Taxation on adjusted profit before tax
attributable to the owners of the parent (£m)
|
|
(368)
|
(297)
|
|
Adjusted profit after tax attributable to the
owners of the parent (£m)
|
|
1,010
|
844
|
|
|
|
|
|
|
Basic weighted average number of shares
(millions)
|
|
6,922
|
7,172
|
|
Adjusted basic earnings per share
(pence)
|
|
14.59
|
11.77
|
|
|
|
|
|
|
Diluted weighted average number of shares
(millions)
|
|
6,992
|
7,226
|
|
Adjusted diluted earnings per share
(pence)
|
|
14.45
|
11.68
|
(a) Comparatives have been re-presented to disclose Banking
operations as a discontinued operation. Refer to Note 6.
(b) Excludes profit before tax
attributable to non-controlling interests of £nil (26 weeks ended
26 August 2023: £2m).
Note 9 Property, plant and equipment
|
|
|
24
August 2024
|
|
|
|
26
August 2023
|
|
|
|
Land and
buildings
£m
|
Other(a)
£m
|
Total
£m
|
|
Land and
buildings
£m
|
Other(a)
£m
|
Total
£m
|
|
Net carrying value
|
|
|
|
|
|
|
|
|
Opening balance
|
14,997
|
2,224
|
17,221
|
|
14,870
|
1,992
|
16,862
|
|
Foreign currency translation
|
(15)
|
(4)
|
(19)
|
|
(81)
|
(13)
|
(94)
|
|
Additions(b)
|
158
|
264
|
422
|
|
144
|
278
|
422
|
|
Acquired through business
combinations
|
-
|
1
|
1
|
|
-
|
-
|
-
|
|
Reclassification
|
3
|
(2)
|
1
|
|
3
|
(3)
|
-
|
|
Transfers (to)/from assets classified as held
for sale
|
(18)
|
-
|
(18)
|
|
56
|
2
|
58
|
|
Disposals
|
(11)
|
(2)
|
(13)
|
|
(8)
|
(6)
|
(14)
|
|
Depreciation charge for the period
|
(230)
|
(229)
|
(459)
|
|
(221)
|
(223)
|
(444)
|
|
Closing balance
|
14,884
|
2,252
|
17,136
|
|
14,763
|
2,027
|
16,790
|
|
|
|
|
|
|
|
|
|
|
Construction in progress included
above(c)
|
114
|
247
|
361
|
|
86
|
244
|
330
|
(a) Other assets consist of fixtures and
fittings with a net carrying value of £1,713m (24 February 2024:
£1,679m, 26 August 2023: £1,529m), office equipment with a net
carrying value of £235m (24 February 2024: £234m, 26 August 2023:
£199m) and motor vehicles with a net carrying value of £304m (24
February 2024: £311m, 26 August 2023: £299m).
(b) Includes £25m (24
February 2024: £107m, 26 August 2023: £34m) relating to property
buyback and store purchase transactions.
(c) Construction in progress does not
include land.
Commitments for capital expenditure contracted
for, but not incurred, at 24 August 2024 were £358m (24 February
2024: £160m, 26 August 2023: £279m), principally relating to store
development and distribution investment.
At each reporting date, the Group reviews the
carrying amounts of its non-current assets to determine whether
there is any indication of impairment loss or impairment reversal.
The Group has concluded there are no such indicators during the 26
weeks ended 24 August 2024 (26 weeks ended 26 August 2023:
£nil).
Note 10 Leases
Group as lessee
Right of use assets
|
|
|
24 August 2024
|
|
|
|
26 August 2023
|
|
|
|
Land and
buildings
£m
|
Other
£m
|
Total
£m
|
|
Land and
buildings
£m
|
Other
£m
|
Total
£m
|
|
Net carrying value
|
|
|
|
|
|
|
|
|
Opening balance
|
5,365
|
113
|
5,478
|
|
5,387
|
113
|
5,500
|
|
Additions (including sale and leaseback
transactions)
|
87
|
31
|
118
|
|
126
|
9
|
135
|
|
Acquired through business
combinations
|
5
|
-
|
5
|
|
-
|
-
|
-
|
|
Depreciation charge for the period
|
(251)
|
(18)
|
(269)
|
|
(252)
|
(18)
|
(270)
|
|
Other movements*
|
102
|
-
|
102
|
|
156
|
1
|
157
|
|
Closing balance
|
5,308
|
126
|
5,434
|
|
5,417
|
105
|
5,522
|
* Other movements include lease
terminations, modifications and reassessments, foreign exchange,
reclassifications between asset classes and entering into finance
subleases.
Lease liabilities
The following table shows the discounted lease
liabilities included in the Group balance sheet and the contractual
undiscounted lease payments:
|
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Current
|
607
|
584
|
593
|
|
Non-current
|
6,935
|
7,038
|
7,116
|
|
Total lease liabilities
|
7,542
|
7,622
|
7,709
|
|
Total undiscounted lease payments
|
10,570
|
10,757
|
10,800
|
A reconciliation of the Group's opening to
closing lease liabilities balance is presented in Note
18.
Note 11 Cash and cash equivalents and
short-term investments
Cash and cash equivalents
|
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Cash at bank and on hand
|
3,223
|
2,300
|
2,470
|
|
Short-term deposits
|
87
|
40
|
56
|
|
Cash and cash
equivalents in the Group balance sheet
|
3,310
|
2,340
|
2,526
|
|
Bank overdrafts
|
(973)
|
(812)
|
(677)
|
|
Cash and cash equivalents in the Group cash
flow statement
|
2,337
|
1,528
|
1,849
|
Short-term investments
|
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Money market funds, deposits and similar
instruments
|
1,912
|
2,128
|
2,692
|
Cash and cash equivalents include
£28m (24 February 2024: £30m, 26 August 2023: £28m) of
restricted amounts mainly relating to unclaimed dividends, the
Group's pension schemes and employee benefit trusts.
Note 12 Commercial income
Below are the commercial income balances
included within inventories and trade and other receivables, or
netted against trade and other payables.
|
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Current assets
|
|
|
|
|
Inventories
|
(12)
|
(12)
|
(12)
|
|
Trade and other receivables
|
|
|
|
|
Trade/other receivables
|
81
|
86
|
61
|
|
Accrued income
|
114
|
136
|
105
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
108
|
138
|
96
|
Note 13 Borrowings
Borrowings are classified as current and
non-current based on their scheduled repayment dates. Repayments of
principal amounts are classified as current if the repayment is
scheduled to be made within one year of the balance sheet date.
During the 26-weeks ended 24 August 2024, within continuing
operations, the Group made principal repayments of: €473m (26 weeks
ended 26 August 2023: £97m) relating to a Euro MTN which matured
July 2024; €50m partial repayment on the Euro 2047 MTN; principal
repayments on amortising secured debt of £27m; and Tesco Bank
repaid Senior MREL Notes of £146m. In addition, there has been a
£350m (26 weeks ended 26 August 2023: £982m) bond issuance,
maturing in May 2034.
Current
|
|
|
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Bank loans and overdrafts
|
|
|
998
|
838
|
704
|
|
Borrowings*
|
|
|
518
|
698
|
1,313
|
|
|
|
|
1,516
|
1,536
|
2,017
|
Non-current
|
|
|
|
24 August
2024
£m
|
24 February
2024
£m
|
26 August
2023
£m
|
|
Borrowings*
|
|
|
5,580
|
5,683
|
5,911
|
* £nil of current (24 February 2024: £nil, 26
August 2023: £139m) and £nil of non-current borrowings (24 February
2024: £143m, 26 August 2023: £299m) relate to borrowings issued by
Tesco Bank.
Borrowing facilities
The Group has a £2.5bn undrawn committed
facility available at 24 August 2024 (24 February 2024: £2.5bn, 26
August 2023: £2.5bn), in respect of which all conditions precedent
had been met as at that date, consisting of a syndicated revolving
credit facility expiring in more than two years. The cost of the
facility is linked to three ESG targets and incurs commitment fees
at market rates which would provide funding at floating
rates.
In addition, Tesco Bank has a separate £200m
committed repurchase facility, maturing on 26 October
2024.
There were no withdrawals from either facility
during the financial period to 24 August 2024 (26 weeks ended 26
August 2023: £nil).
Note 14 Insurance
Balances in this note relate to the Group's
subsidiary, Tesco Underwriting Limited (TU), part of the Tesco Bank
segment.
Insurance contract liabilities and reinsurance
contract assets
The breakdown of portfolios and groups of
insurance contracts issued and reinsurance contracts held is set
out in the table below:
|
|
At 24
August 2024
|
|
At 24
February 2024
|
|
At 26
August 2023
|
|
|
Insurance contract
liabilities
£m
|
Reinsurance contracts
held
£m
|
Net (liabilities)/
assets
£m
|
|
Insurance contract
liabilities
£m
|
Reinsurance contracts
held
£m
|
Net (liabilities)/
assets
£m
|
|
Insurance contract
liabilities
£m
|
Reinsurance contracts
held
£m
|
Net (liabilities)/
assets
£m
|
|
(Liabilities)/assets for remaining
coverage
|
(326)
|
(274)
|
(600)
|
|
(260)
|
(178)
|
(438)
|
|
(260)
|
(190)
|
(450)
|
|
(Liabilities)/assets for incurred
claims
|
(258)
|
396
|
138
|
|
(266)
|
303
|
37
|
|
(238)
|
300
|
62
|
|
|
(584)
|
122
|
(462)
|
|
(526)
|
125
|
(401)
|
|
(498)
|
110
|
(388)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts measured under PAA
|
(440)
|
68
|
(372)
|
|
(364)
|
62
|
(302)
|
|
(312)
|
43
|
(269)
|
|
Contracts not measured under PAA*
|
(144)
|
54
|
(90)
|
|
(162)
|
63
|
(99)
|
|
(186)
|
67
|
(119)
|
|
|
(584)
|
122
|
(462)
|
|
(526)
|
125
|
(401)
|
|
(498)
|
110
|
(388)
|
* Contracts not measured under the
premium allocation approach (PAA) are measured using the general
measurement model.
Measurement components of insurance contract
liabilities and reinsurance contract assets are set out in the
table below. The estimate of the present value of future cash flows
is adjusted for events since the actuarial valuation:
|
|
At 24
August 2024
|
|
At 24
February 2024
|
|
At 26
August 2023
|
|
|
Present value of future cash
flows
£m
|
Risk adjustment
£m
|
CSM
£m
|
Total
£m
|
|
Present value of future cash
flows
£m
|
Risk adjustment
£m
|
CSM
£m
|
Total
£m
|
|
Present value of future cash
flows
£m
|
Risk adjustment
£m
|
CSM
£m
|
Total
£m
|
|
Insurance contract liabilities
|
(495)
|
(18)
|
(71)
|
(584)
|
|
(437)
|
(16)
|
(73)
|
(526)
|
|
(401)
|
(17)
|
(80)
|
(498)
|
|
Reinsurance contract assets
|
89
|
6
|
27
|
122
|
|
95
|
6
|
24
|
125
|
|
74
|
7
|
29
|
110
|
|
Net (liabilities)/assets
|
(406)
|
(12)
|
(44)
|
(462)
|
|
(342)
|
(10)
|
(49)
|
(401)
|
|
(327)
|
(10)
|
(51)
|
(388)
|
Note 15 Financial instruments
At 24 August 2024 and 24 February 2024, the
tables below exclude the assets and liabilities of the Banking
operations disposal group classified as held for sale.
The expected maturity of financial assets and
liabilities is not considered to be materially different to their
current and non-current classification.
Fair value of financial assets and liabilities
measured at amortised cost
The table excludes cash and cash equivalents,
short-term investments, trade receivables/payables, other
receivables/payables, accruals and deposits from banks where the
carrying values approximate fair value. The levels in the table
refer to the fair value measurement hierarchy.
|
|
|
24 August 2024
|
|
24 February 2024
|
|
26 August 2023
|
|
|
Level
|
Carrying
value
£m
|
Fair
value(a)
£m
|
|
Carrying
value
£m
|
Fair
value(a)
£m
|
|
Carrying
value
£m
|
Fair
value(a)
£m
|
|
Financial assets measured at amortised
cost
|
|
|
|
|
|
|
|
|
|
|
Loans and advances to
customers(b)
|
3
|
-
|
-
|
|
-
|
-
|
|
7,422
|
7,385
|
|
Investment securities at amortised
cost(c)
|
1 and 2
|
197
|
209
|
|
1,033
|
838
|
|
1,030
|
1,025
|
|
Joint ventures and associates loan
receivables(d)
|
2
|
96
|
107
|
|
96
|
97
|
|
106
|
110
|
|
Financial liabilities measured at amortised
cost
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
|
|
|
|
|
|
|
|
|
Amortised cost(e)
|
1
|
(5,079)
|
(4,871)
|
|
(5,067)
|
(4,794)
|
|
(5,238)
|
(4,829)
|
|
Bonds in fair value hedge
relationships
|
1
|
(2,017)
|
(2,067)
|
|
(2,152)
|
(2,211)
|
|
(2,690)
|
(2,729)
|
|
Customer deposits(b)
|
3
|
-
|
-
|
|
-
|
-
|
|
(6,342)
|
(6,205)
|
(a) Refer to the fair value
measurement section below for details on Level 2 and 3 valuation
methodology.
(b) In February
2024 loans and advances to customers and customer deposits were
transferred to the Banking operations disposal group classified as
held for sale. Refer to Note 6 for further details.
(c) Investment securities held by Tesco Bank have been wound down
as part of the preparation for the disposal of Banking operations.
Refer to Note 2.
(d) Joint
ventures and associates loan receivables carrying amounts of £96m
(24 February 2024: £96m, 26 August 2023: £106m) are presented in
the Group balance sheet net of deferred profits of £nil (24
February 2024: £nil, 26 August 2023: £38m) historically
arising from the sale of property assets to joint
ventures.
(e) Comparative fair values as at 26
August 2023 have been restated from £(5,480)m to £(4,829)m for a
revision in the fair value methodology applied to certain
index-linked bonds, with no impact on their carrying
values.
Fair value measurement by level of fair value
hierarchy
The following tables present the Group's
financial assets and liabilities that are measured at fair value,
by level of fair value hierarchy:
- quoted
prices (unadjusted) in active markets for identical assets or
liabilities (Level 1);
- inputs
other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices) (Level 2);
and
- inputs
for the asset or liability that are not based on observable market
data (that is, unobservable inputs) (Level 3).
Level 2 assets and liabilities are valued by
discounting future cash flows using externally sourced market yield
curves, including interest rate curves and foreign exchange rates
from highly liquid markets. Refer to the Level 3 instruments
section below for details on Level 3 valuation
methodology.
|
At 24 August 2024
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
|
Assets
|
|
|
|
|
|
Investments at fair value through other
comprehensive income
|
751
|
-
|
19
|
770
|
|
Short-term investments at fair value through
profit or loss
|
949
|
-
|
-
|
949
|
|
Cash and cash equivalents at fair value through
profit or loss
|
-
|
63
|
-
|
63
|
|
Investments at fair value through profit or
loss
|
-
|
-
|
16
|
16
|
|
Derivative financial instruments:
|
|
|
|
|
|
Interest rate swaps
|
-
|
-
|
11
|
11
|
|
Cross-currency swaps
|
-
|
-
|
141
|
141
|
|
Index-linked swaps
|
-
|
-
|
636
|
636
|
|
Foreign currency forward contracts
|
-
|
11
|
-
|
11
|
|
Total assets
|
1,700
|
74
|
823
|
2,597
|
|
Liabilities
|
|
|
|
|
|
Derivative financial instruments:
|
|
|
|
|
|
Interest rate swaps
|
-
|
-
|
(88)
|
(88)
|
|
Cross-currency swaps
|
-
|
-
|
(130)
|
(130)
|
|
Foreign currency forward contracts
|
-
|
(38)
|
-
|
(38)
|
|
Diesel forward contracts
|
-
|
(5)
|
-
|
(5)
|
|
Total liabilities
|
-
|
(43)
|
(218)
|
(261)
|
|
Net assets
|
1,700
|
31
|
605
|
2,336
|
|
At 24 February 2024
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
|
Assets
|
|
|
|
|
|
Investments at fair value through other
comprehensive income
|
682
|
-
|
19
|
701
|
|
Short-term investments at fair value through
profit or loss
|
889
|
-
|
-
|
889
|
|
Cash and cash equivalents at fair value through
profit or loss
|
-
|
35
|
-
|
35
|
|
Investments at fair value through profit or
loss
|
-
|
-
|
18
|
18
|
|
Derivative financial instruments:
|
|
|
|
|
|
Interest rate swaps
|
-
|
29
|
15
|
44
|
|
Cross-currency swaps
|
-
|
-
|
182
|
182
|
|
Index-linked swaps
|
-
|
-
|
583
|
583
|
|
Foreign currency forward contracts
|
-
|
25
|
-
|
25
|
|
Diesel forward contracts
|
-
|
2
|
-
|
2
|
|
Total assets
|
1,571
|
91
|
817
|
2,479
|
|
Liabilities
|
|
|
|
|
|
Derivative financial instruments:
|
|
|
|
|
|
Interest rate swaps
|
-
|
(9)
|
(96)
|
(105)
|
|
Cross-currency swaps
|
-
|
-
|
(139)
|
(139)
|
|
Foreign currency forward contracts
|
-
|
(20)
|
-
|
(20)
|
|
Diesel forward contracts
|
-
|
(2)
|
-
|
(2)
|
|
Total liabilities
|
-
|
(31)
|
(235)
|
(266)
|
|
Net assets
|
1,571
|
60
|
582
|
2,213
|
|
At 26 August 2023
|
Level 1
£m
|
Level 2
£m
|
Level 3
£m
|
Total
£m
|
|
Assets
|
|
|
|
|
|
Investments at fair value through other
comprehensive income
|
616
|
-
|
18
|
634
|
|
Short-term investments at fair value through
profit or loss
|
1,055
|
-
|
-
|
1,055
|
|
Cash and cash equivalents at fair value through
profit or loss
|
-
|
55
|
-
|
55
|
|
Investments at fair value through profit or
loss
|
-
|
20
|
1
|
21
|
|
Derivative financial instruments:
|
|
|
|
|
|
Interest rate swaps
|
-
|
128
|
-
|
128
|
|
Cross-currency swaps
|
-
|
-
|
174
|
174
|
|
Index-linked swaps
|
-
|
-
|
590
|
590
|
|
Foreign currency forward contracts
|
-
|
28
|
-
|
28
|
|
Diesel forward contracts
|
-
|
2
|
-
|
2
|
|
Total assets
|
1,671
|
233
|
783
|
2,687
|
|
Liabilities
|
|
|
|
|
|
Derivative financial instruments:
|
|
|
|
|
|
Interest rate swaps
|
-
|
(20)
|
(163)
|
(183)
|
|
Cross-currency swaps
|
-
|
-
|
(162)
|
(162)
|
|
Foreign currency forward contracts
|
-
|
(45)
|
-
|
(45)
|
|
Diesel forward contracts
|
-
|
(3)
|
-
|
(3)
|
|
Total liabilities
|
-
|
(68)
|
(325)
|
(393)
|
|
Net assets
|
1,671
|
165
|
458
|
2,294
|
During the period,
there were no transfers (26 weeks ended 26 August
2023: no transfers) between Level 1 and Level 2 fair value
measurements.
Level 3 instruments
The valuation techniques and significant
unobservable inputs are unchanged in the period from that described
in Note 26 of the Annual Report and Financial Statements
2024.
The following table presents the changes in
Level 3 instruments:
|
|
26 weeks ended
24 August 2024
|
|
26 weeks ended
26 August 2023
|
|
|
Uncollateralised derivatives
£m
|
Unlisted
investments
£m
|
|
Uncollateralised derivatives
£m
|
Unlisted
investments
£m
|
|
At the beginning of the period
|
545
|
37
|
|
379
|
34
|
|
Gains/(losses) recognised in finance
costs(a)
|
36
|
(1)
|
|
(56)
|
1
|
|
Gains/(losses) recognised in other
comprehensive income not reclassified to the income
statement
|
-
|
-
|
|
-
|
(1)
|
|
Gains/(losses) recognised in other
comprehensive income that may subsequently be reclassified to the
income statement
|
26
|
-
|
|
15
|
-
|
|
Additions
|
-
|
-
|
|
-
|
5
|
|
Settlements
|
(37)
|
-
|
|
-
|
-
|
|
Transfers of assets/(liabilities) into Level
3(b)
|
-
|
-
|
|
101
|
-
|
|
Transfer of assets/(liabilities) from Level
3(c)
|
-
|
(1)
|
|
-
|
(20)
|
|
At the end of the period
|
570
|
35
|
|
439
|
19
|
(a) All gains or losses are
unrealised.
(b) There were £nil (26
weeks ended 26 August 2023: £nil) transfers of unlisted investments
and £nil of derivative assets (26 weeks ended 26 August 2023:
£101m) to Level 3 from Level 2 and £nil (26 weeks ended 26 August
2023: £nil) to Level 3 from Level 1.
(c) There were £nil unlisted
investments transferred from Level 3 to Level 2 (26 weeks ended 26
August 2023: £(20)m) and £(1)m transfers from Level 3 to
Level 1 (26 weeks ended 26 August 2023:
£nil).
Note 16 Post-employment benefits
Pensions
The Group operates a variety of post-employment
benefit arrangements, covering both funded and unfunded defined
benefit schemes and defined contribution schemes.
The principal defined benefit pension plan
within the Group is the Tesco PLC Pension Scheme (the Scheme), a UK
scheme closed to future accrual. The latest triennial actuarial
pension funding valuation for the Scheme as
at 31 March 2022 using a projected unit credit method
showed a funding surplus of £0.9bn. The Scheme remained in a
funding surplus as at 24 August 2024.
On completion of a comprehensive strategic
review of the Scheme's long-term needs, the Trustee has appointed
Schroders with effect from 28 June 2024 as the Scheme's principal
Outsourced Chief Investment Officer (OCIO), under an investment
management agreement.
Schroders will work with the Trustee to implement the Scheme's
investment strategy and deliver security for the Scheme's
members.
As set out in the Annual Report and Financial
Statements 2024, the Group continues to monitor the Virgin Media vs
NTL Pension Trustees court case. Despite the Court of Appeal
recently upholding the earlier decision of the High Court against
Virgin Media, based on the work performed by the Group to date, it
remains appropriate that no adjustment is made to the Group's
condensed consolidated interim financial statements, and we will
continue to keep this matter under review.
IFRIC 14
For schemes in an accounting surplus position,
these surpluses are recognised on the balance sheet in line with
IFRIC 14, as the Group has an unconditional legal right to any
future economic benefits by way of future refunds following a
gradual settlement.
Movement in the Group pension surplus/(deficit)
during the financial period
|
|
Net defined benefit
surplus/(deficit)
|
|
|
24 August 2024
£m
|
24 February 2024
£m
|
26 August 2023
£m
|
|
Opening balance
|
(631)
|
(391)
|
(391)
|
|
Current service cost
|
(9)
|
(15)
|
(7)
|
|
Finance income/(cost)
|
(15)
|
(18)
|
(10)
|
|
Included in the Group income
statement
|
(24)
|
(33)
|
(17)
|
|
|
|
|
|
|
Remeasurement gain/(loss):
|
|
|
|
|
Financial assumptions gain/(loss)
|
(74)
|
720
|
1,183
|
|
Demographic assumptions gain/(loss)
|
(7)
|
261
|
219
|
|
Experience gain/(loss)
|
(62)
|
(182)
|
(202)
|
|
Return on plan assets excluding finance
income
|
395
|
(1,050)
|
(987)
|
|
Included in the Group statement of
comprehensive income/(loss)
|
252
|
(251)
|
213
|
|
|
|
|
|
|
Employer contributions
|
9
|
15
|
7
|
|
Additional employer contributions
|
12
|
24
|
11
|
|
Benefits paid
|
2
|
5
|
2
|
|
Other movements
|
23
|
44
|
20
|
|
Closing balance
|
(380)
|
(631)
|
(175)
|
|
Withholding tax on
surplus(a)
|
(4)
|
(4)
|
(3)
|
|
Closing balance, net of withholding
tax
|
(384)
|
(635)
|
(178)
|
|
Consisting of:
|
|
|
|
|
Schemes in deficit
|
(426)
|
(657)
|
(200)
|
|
Schemes in surplus(b)
|
42
|
22
|
22
|
|
Deferred tax
asset/(liability)(c)
|
102
|
162
|
48
|
|
Surplus/(deficit) in schemes at the end of the
period, net of deferred tax
|
(282)
|
(473)
|
(130)
|
(a) Recognised through other
comprehensive income in remeasurements of defined benefit pension
schemes.
(b) Schemes in surplus in the UK are
presented on the balance sheet net of a 25% withholding tax (24
February 2024 and 26 August 2023: 35%).
(c) Including £(4)m deferred tax
liability relating to the ROI scheme in surplus where no
withholding tax is applicable (24 February 2024: £(2)m, 26 August
2023: £(2)m).
Scheme principal assumptions
The principal assumptions, on a weighted
average basis, used by external actuaries to value the defined
benefit obligation of the Scheme were as follows:
|
|
24 August
2024
%
|
24 February
2024
%
|
26 August
2023
%
|
|
Discount rate(a)
|
5.1
|
5.1
|
5.4
|
|
Price inflation
|
2.9
|
2.9
|
3.1
|
|
Rate of increase in deferred
pensions(b)
|
2.5
|
2.5
|
2.6
|
|
Rate of increase in pensions in
payment(b)
|
|
|
|
|
Benefits accrued before 1 June 2012
|
2.8
|
2.8
|
2.9
|
|
Benefits accrued after 1 June 2012
|
2.5
|
2.5
|
2.6
|
(a) The discount rate for the Scheme is
determined by reference to market yields of high-quality corporate
bonds of suitable currency and term to the Scheme cash flows and
extrapolated based on the trend observable in corporate bond
yields.
(b) In excess of any guaranteed minimum
pension (GMP) element.
Sensitivity analysis of significant actuarial
assumptions
The sensitivity of significant assumptions upon
the Scheme defined benefit obligation is detailed below:
|
|
24 August 2024
|
|
|
Financial assumptions -
Increase/(decrease) in UK defined benefit obligation
|
Discount rate
£m
|
Inflation rate
£m
|
|
|
Impact of 0.1% increase of the
assumption
|
(182)
|
170
|
|
|
Impact of 0.1% decrease of the
assumption
|
195
|
(158)
|
|
|
Impact of 1.0% increase of the
assumption
|
(1,690)
|
1,763
|
|
|
Impact of 1.0% decrease of the
assumption
|
2,152
|
(1,484)
|
|
The sensitivities reflect the range of recent
assumption movements and illustrate that the financial assumption
sensitivities do not move in a linear fashion. Movements in the
defined benefit obligation from discount rate and inflation rate
changes may be partially offset by movements in assets.
Note 17 Share capital and other
reserves
Share capital
|
|
26 weeks ended
24 August 2024
|
52 weeks ended
24 February 2024
|
|
|
Ordinary shares of 6 ⅓p each
|
Ordinary shares of 6 ⅓p each
|
|
|
Number
|
£m
|
Number
|
£m
|
|
Allotted, called-up and fully paid:
|
|
|
|
|
|
At the beginning of the financial
period
|
7,038,930,440
|
445
|
7,318,341,195
|
463
|
|
Shares cancelled
|
(182,239,776)
|
(12)
|
(279,410,755)
|
(18)
|
|
At the end of the financial period
|
6,856,690,664
|
433
|
7,038,930,440
|
445
|
No shares were issued during the current or
prior financial period in relation to share options or bonus
awards. The holders of Ordinary shares are entitled to receive
dividends as declared from time to time and are entitled to one
vote per share at general meetings of the Company.
Other reserves
The tables below set out the movements in other
reserves:
|
|
Capital redemption reserve
£m
|
Hedging
reserve(a)
£m
|
Translation
reserve
£m
|
Own
shares
held(b)
£m
|
Merger
reserve
£m
|
Insurance finance
reserve
£m
|
Total
£m
|
|
At 24 February 2024
|
61
|
75
|
206
|
(315)
|
3,090
|
14
|
3,131
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
Retranslation of net assets of
overseas subsidiaries, joint ventures and associates, net of
hedging instruments
|
-
|
-
|
(22)
|
-
|
-
|
-
|
(22)
|
|
Gains/(losses) on cash flow
hedges
|
-
|
(6)
|
-
|
-
|
-
|
-
|
(6)
|
|
Cash flow hedges reclassified and
reported in the Group income statement
|
-
|
(36)
|
-
|
-
|
-
|
-
|
(36)
|
|
Finance income/(expenses) from
insurance contracts issued
|
-
|
-
|
-
|
-
|
-
|
(3)
|
(3)
|
|
Finance income/(expenses) from
reinsurance contracts held
|
-
|
-
|
-
|
-
|
-
|
1
|
1
|
|
Tax relating to components of other
comprehensive income
|
-
|
5
|
-
|
-
|
-
|
-
|
5
|
|
Total other comprehensive income/(loss)
|
-
|
(37)
|
(22)
|
-
|
-
|
(2)
|
(61)
|
|
Inventory cash flow hedge movements
|
|
|
|
|
|
|
|
|
(Gains)/losses transferred to the cost of
inventory
|
-
|
9
|
-
|
-
|
-
|
-
|
9
|
|
Total inventory cash flow hedge movements
|
-
|
9
|
-
|
-
|
-
|
-
|
9
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
Own shares purchased for
cancellation
|
-
|
-
|
-
|
(746)
|
-
|
-
|
(746)
|
|
Own shares cancelled
|
12
|
-
|
-
|
575
|
-
|
-
|
587
|
|
Own shares purchased for share
schemes
|
-
|
-
|
-
|
(101)
|
-
|
-
|
(101)
|
|
Share-based payments
|
-
|
-
|
-
|
183
|
-
|
-
|
183
|
|
Total transactions with owners
|
12
|
-
|
-
|
(89)
|
-
|
-
|
(77)
|
|
At 24 August 2024
|
73
|
47
|
184
|
(404)
|
3,090
|
12
|
3,002
|
(a) Movements in cost of
hedging reserve in the 26 weeks ended and balances as at 24 August
2024 were £nil (24 February 2023: £nil, 26 August 2023:
£nil).
(b) Including 39.9 million
shares held by the Employee Benefit Trust (24 February 2024: 70.0
million, 26 August 2023: 52.4 million).
|
|
Capital redemption reserve
£m
|
Hedging
reserve(a)
£m
|
Translation
reserve
£m
|
Own
shares
held(b)
£m
|
Merger
reserve
£m
|
Insurance finance
reserve
£m
|
Total
£m
|
|
At 25 February 2023
|
43
|
27
|
322
|
(359)
|
3,090
|
16
|
3,139
|
|
Other comprehensive
income/(loss)
|
|
|
|
|
|
|
|
|
Retranslation of net assets of
overseas subsidiaries, joint ventures and associates, net of
hedging instruments
|
-
|
-
|
(73)
|
-
|
-
|
-
|
(73)
|
|
Gains/(losses) on cash flow
hedges
|
-
|
(1)
|
-
|
-
|
-
|
-
|
(1)
|
|
Cash flow hedges reclassified and
reported in the Group income statement
|
-
|
(25)
|
-
|
-
|
-
|
-
|
(25)
|
|
Finance income/(expenses) from
insurance contracts issued
|
-
|
-
|
-
|
-
|
-
|
4
|
4
|
|
Finance income/(expenses) from
reinsurance contracts held
|
-
|
-
|
-
|
-
|
-
|
(2)
|
(2)
|
|
Tax relating to components of other
comprehensive income
|
-
|
(7)
|
-
|
-
|
-
|
(1)
|
(8)
|
|
Total other comprehensive income/(loss)
|
-
|
(33)
|
(73)
|
-
|
-
|
1
|
(105)
|
|
Transfer from
hedging reserve to retained earnings
|
-
|
44
|
-
|
-
|
-
|
-
|
44
|
|
Inventory cash flow hedge movements
|
|
|
|
|
|
|
|
|
(Gains)/losses transferred to the cost of
inventory
|
-
|
47
|
-
|
-
|
-
|
-
|
47
|
|
Total inventory cash flow hedge movements
|
-
|
47
|
-
|
-
|
-
|
-
|
47
|
|
Transactions with owners
|
|
|
|
|
|
|
|
|
Own shares purchased for
cancellation
|
-
|
-
|
-
|
(752)
|
-
|
-
|
(752)
|
|
Own shares cancelled
|
12
|
-
|
-
|
503
|
-
|
-
|
515
|
|
Own shares purchased for share
schemes
|
-
|
-
|
-
|
(47)
|
-
|
-
|
(47)
|
|
Share-based payments
|
-
|
-
|
-
|
177
|
-
|
-
|
177
|
|
Total transactions with owners
|
12
|
-
|
-
|
(119)
|
-
|
-
|
(107)
|
|
At 26 August 2023
|
55
|
85
|
249
|
(478)
|
3,090
|
17
|
3,018
|
Refer to previous table for
footnotes.
Own shares held
The table below presents the
reconciliation of own shares purchased for cancellation between the
Group statement of changes in equity and the Group cash flow
statement:
|
|
|
24 August
2024
|
26 August
2023
|
|
Own
shares purchased for cancellation
|
|
£m
|
£m
|
|
Included in the Group statement of changes in
equity
|
|
(746)
|
(752)
|
|
Outstanding amount recognised as financial
liabilities(a)
|
|
171
|
249
|
|
Included in the Group cash flow
statement(b)
|
|
(575)
|
(503)
|
(a) Shares to be delivered under a
share repurchase agreement with an external bank, included in other
payables.
(b) 182.2 million (26
August 2023: 190.6 million) shares purchased at an average price of
£3.16 per share (26 August 2023: £2.64).
182.2 million (26 August 2023: 190.6 million)
shares, representing 2.7% of the called-up share capital as at 24
August 2024 (26 August 2023: 2.7%), with total consideration of
£575m (26 August 2023: £503m) including expenses of £3m (26 August
2023: £2m) were cancelled and charged to retained
earnings.
Insurance finance reserve
Insurance finance reserve includes
the impact of changes in market discount rates on insurance and
reinsurance contract assets and liabilities.
Note 18 Analysis of changes in net
debt
The Net debt APM, as defined in the Glossary,
excludes the net debt of Tesco Bank and includes the net debt of
Retail discontinued operations. Balances and movements in respect
of the total Group and Tesco Bank are presented to allow
reconciliation between the Group balance sheet and the Group cash
flow statement.
|
|
24 August 2024
|
|
24 February 2024
|
|
26 August 2023
|
|
|
Group
|
Tesco Bank
|
Retail
|
|
Group
|
Tesco Bank
|
Retail
|
|
Group
|
Tesco Bank
|
Retail
|
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
£m
|
£m
|
£m
|
|
Bank and other borrowings, excluding
overdrafts(a)
|
(6,123)
|
(237)
|
(5,886)
|
|
(6,407)
|
(380)
|
(6,027)
|
|
(7,251)
|
(676)
|
(6,575)
|
|
Lease liabilities
|
(7,542)
|
(1)
|
(7,541)
|
|
(7,622)
|
(2)
|
(7,620)
|
|
(7,709)
|
(21)
|
(7,688)
|
|
Net financing derivatives
|
567
|
-
|
567
|
|
544
|
(3)
|
547
|
|
429
|
(7)
|
436
|
|
Share purchase obligations
|
(171)
|
-
|
(171)
|
|
-
|
-
|
-
|
|
(249)
|
-
|
(249)
|
|
Liabilities from financing
activities
|
(13,269)
|
(238)
|
(13,031)
|
|
(13,485)
|
(385)
|
(13,100)
|
|
(14,780)
|
(704)
|
(14,076)
|
|
Cash and cash equivalents in the balance
sheet
|
3,310
|
1,149
|
2,161
|
|
2,340
|
442
|
1,898
|
|
2,526
|
716
|
1,810
|
|
Overdrafts(b)
|
(973)
|
-
|
(973)
|
|
(812)
|
-
|
(812)
|
|
(677)
|
-
|
(677)
|
|
Cash and cash equivalents (including
overdrafts) in the cash flow statement
|
2,337
|
1,149
|
1,188
|
|
1,528
|
442
|
1,086
|
|
1,849
|
716
|
1,133
|
|
Short-term investments
|
1,912
|
-
|
1,912
|
|
2,128
|
-
|
2,128
|
|
2,692
|
-
|
2,692
|
|
Joint venture loans
|
96
|
-
|
96
|
|
96
|
-
|
96
|
|
106
|
-
|
106
|
|
Interest and other receivables
|
17
|
-
|
17
|
|
23
|
-
|
23
|
|
23
|
-
|
23
|
|
Net operating and investing
derivatives
|
(29)
|
-
|
(29)
|
|
26
|
23
|
3
|
|
100
|
115
|
(15)
|
|
Net debt of disposal group
|
(171)
|
(171)
|
-
|
|
(182)
|
(182)
|
-
|
|
-
|
-
|
-
|
|
Exclude: Share purchase obligations
|
171
|
-
|
171
|
|
-
|
-
|
-
|
|
249
|
-
|
249
|
|
Net debt APM
|
|
|
(9,676)
|
|
|
|
(9,764)
|
|
|
|
(9,888)
|
(a) Retail bank
and other borrowings is presented net of a £235m intercompany loan with Tesco Bank (26 August 2023:
£235m).
(b) Overdraft
balances are included within borrowings in the Group balance
sheet, and within cash and cash equivalents in the
Group cash flow statement. Refer to Note 11.
The tables below set out the movements in
liabilities arising from continuing operations financing
activities:
|
|
Bank and other borrowings,
excluding overdrafts
£m
|
Lease liabilities
£m
|
Net financing
derivatives(a)
£m
|
Share purchase
obligations(b)
£m
|
Liabilities from Group financing
activities(c)
£m
|
|
At 24 February 2024
|
(6,407)
|
(7,622)
|
544
|
-
|
(13,485)
|
|
Cash flows arising from financing
activities
|
280
|
296
|
(34)
|
575
|
1,117
|
|
Cash flows arising from operating
activities:
|
|
|
|
|
|
|
Interest paid
|
188
|
186
|
14
|
-
|
388
|
|
Non-cash movements:
|
|
|
|
|
|
|
Fair value gains/(losses)
|
(59)
|
-
|
93
|
-
|
34
|
|
Foreign exchange
|
29
|
4
|
-
|
-
|
33
|
|
Interest income/(charge)
|
(154)
|
(186)
|
(50)
|
-
|
(390)
|
|
Acquisitions and disposals
|
-
|
(5)
|
-
|
-
|
(5)
|
|
Lease additions, terminations, modifications
and reassessments
|
-
|
(215)
|
-
|
-
|
(215)
|
|
Share purchase agreements
|
-
|
-
|
-
|
(746)
|
(746)
|
|
At 24 August 2024
|
(6,123)
|
(7,542)
|
567
|
(171)
|
(13,269)
|
(a) Net financing
derivatives comprise those derivatives which hedge the Group's
exposures in respect of lease liabilities and borrowings. Net
operating and investing derivatives, which form part of the Group's
Net debt APM, are not included.
(b) Share purchase obligations form part
of the liabilities arising from the Group's financing activities,
but do not form part of Net debt. Cash flows arising from financing
activities exclude £64m (26
weeks ended 26 August 2023: £49m) cash received from employees
exercising Save As You Earn (SAYE) options.
(c) Liabilities from Group financing
activities include liabilities from share purchase
obligations of £(171)m (26
August 2023: £(249)m) and exclude net operating and investing
derivatives of £(29)m (26
August 2023: £100m).
|
|
Bank and other borrowings,
excluding overdrafts
£m
|
Lease liabilities
£m
|
Net financing
derivatives(a)
£m
|
Share purchase
obligations(b)
£m
|
Liabilities from Group financing
activities(c)
£m
|
|
At 25 February 2023
|
(6,451)
|
(7,727)
|
472
|
(55)
|
(13,761)
|
|
Cash flows arising from financing
activities
|
(885)
|
308
|
(2)
|
558
|
(21)
|
|
Cash flows arising from operating
activities:
|
|
|
|
|
|
|
Interest paid
|
177
|
183
|
34
|
-
|
394
|
|
Non-cash
movements:
|
|
|
|
|
|
|
Fair value gains/(losses)
|
(18)
|
-
|
(18)
|
-
|
(36)
|
|
Foreign exchange
|
102
|
25
|
-
|
-
|
127
|
|
Interest income/(charge)
|
(176)
|
(183)
|
(57)
|
-
|
(416)
|
|
Acquisitions and disposals
|
-
|
1
|
-
|
-
|
1
|
|
Lease additions, terminations, modifications
and reassessments
|
-
|
(316)
|
-
|
-
|
(316)
|
|
Share purchase agreements
|
-
|
-
|
-
|
(752)
|
(752)
|
|
At 26 August 2023
|
(7,251)
|
(7,709)
|
429
|
(249)
|
(14,780)
|
Refer to previous table for
footnotes.
Note 19 Contingent liabilities
There have been no material changes to the
contingent liabilities of the Group in the period.
Note 20 Events after the reporting
period
There were no material events after the
reporting period requiring disclosure.
Glossary - Alternative performance
measures
Introduction
In the reporting of financial
information, the Directors have adopted various Alternative
performance measures (APMs).
These measures are not defined by
International Financial Reporting Standards (IFRS) and therefore
may not be directly comparable with other companies' APMs,
including those in the Group's industry. APMs should be considered
in addition to, and are not intended to be a substitute for, or
superior to, IFRS measures.
Purpose
The Directors believe that these
APMs assist in providing additional useful information on the
trends, performance and position of the Group. APMs aid
comparability between geographical units or provide measures that
are widely used across the industry. They also aid comparability
between reporting periods; adjusting for certain costs or incomes
that derive from events or transactions that fall within the normal
activities of the Group but which, by virtue of their size or
nature, are adjusted, can provide a helpful alternative perspective
on year-on-year trends, performance and position that aids
comparability over time.
The alternative view presented by
these APMs is consistent with how management views the business,
and how it is reported internally to the Board and Executive
Committee for performance analysis, planning, reporting,
decision-making and incentive-setting purposes.
Further information on the Group's
adjusting items, which is a critical accounting judgement, can be
found in Note 3.
Some of the Group's IFRS measures
are translated at constant exchange rates. Constant exchange rates
are the average actual periodic exchange rates for the previous
financial period and are used to eliminate the effects of exchange
rate fluctuations in assessing performance. Actual exchange rates
are the average actual periodic exchange rates for that financial
period.
All income statement measures are presented on
a continuing operations basis.
There were no changes to the
Group's APMs in the period.
Group APMs
|
APM
|
Closest equivalent IFRS
measure
|
Adjustments to reconcile to IFRS
measure
|
|
Definition and purpose
|
|
|
Income statement
|
|
|
|
|
|
|
Revenue measures
|
|
|
|
|
|
|
Sales
|
Revenue
|
-
Fuel sales
|
|
-
Excludes the impact of fuel sales made at petrol filling
stations to demonstrate the Group's performance in the Retail and
financial services businesses. It removes volatilities outside of
the control of management, associated with the movement in fuel
prices.
-
This is a key management incentive metric.
-
This measure is also presented on a Retail and Tesco Bank
basis.
|
|
|
Growth in sales
|
No direct equivalent
|
-
Ratio N/A
|
|
-
Growth in sales is a ratio that measures year-on-year
movement in Group sales for continuing operations for 26 weeks. It
shows the annual rate of increase in the Group's sales and is
considered a good indicator of how rapidly the Group's core
business is growing.
|
|
|
Like-for-like (LFL)
|
No direct equivalent
|
-
Ratio N/A
|
|
-
Like-for-like is a measure of growth in Group online sales
and sales from stores that have been open for at least a year (but excludes
prior year sales of stores closed during the year) at constant
foreign exchange rates. It is a widely used indicator of a
retailer's current trading performance and is important when
comparing growth between retailers that have different profiles of
expansion, disposals and closures.
|
|
|
Profit measures
|
|
|
|
|
|
|
Adjusted operating
profit
|
Operating profit from continuing
operations(a)
|
-
Adjusting items(b)
|
|
-
Adjusted operating profit is the headline measure of the
Group's performance, based on operating profit from continuing
operations before the impact of adjusting items. Refer to the APM
Purpose section of the Glossary for further information on
adjusting items.
-
Amortisation of acquired intangibles is included within
adjusting items because it relates to historical inorganic business
combinations and does not reflect the Group's ongoing trading
performance (related revenue and other costs from acquisitions are
not adjusted).
-
This is a key management incentive metric.
-
This measure is also presented on a Retail basis.
|
|
|
APM
|
Closest equivalent IFRS
measure
|
Adjustments to reconcile to IFRS
measure
|
|
Definition and purpose
|
|
Adjusted total finance
costs
|
Finance costs
|
-
Adjusting items(b)
|
|
-
Adjusting items within finance costs include net pension
finance income/costs and fair value remeasurements on financial
instruments. Net pension finance income/costs are impacted by
corporate bond yields, which can fluctuate significantly and are
reset each year based on external market factors that are outside
management's control. Fair value remeasurements are impacted by
changes to credit risk and various market indices, applying to
financial instruments resulting from liability management
exercises, which can fluctuate significantly outside of
management's control. This measure helps to provide an alternative
view of year-on-year trends in the Group's finance
costs.
|
|
Adjusted profit before
tax
|
Profit before tax
|
-
Adjusting items(b)
|
|
-
This measure is the summation of the impact of all adjusting
items on profit before tax. Refer to the APM Purpose section of the
Glossary.
|
|
Adjusted operating
margin
|
No direct equivalent
|
-
Ratio N/A
|
|
-
Operating margin is calculated as adjusted operating profit
divided by revenue. Progression in operating margin is an important
indicator of the Group's operating efficiency.
|
|
Adjusted diluted
earnings
per share
|
Diluted earnings per share from
continuing operations
|
-
Adjusting items(b)
|
|
-
This metric shows the adjusted profit after tax from
continuing operations attributable to owners of the parent divided
by the weighted average number of ordinary shares
in issue during the
financial period, adjusted for the effects of dilutive share
options.
|
|
Retail EBITDA (earnings before
adjusting items, interest, tax, depreciation and
amortisation)
|
Retail operating profit from
continuing operations(a)
|
-
Adjusting items(b)
-
Depreciation and amortisation
|
|
-
This measure is widely used by analysts, investors and other
users of the accounts to evaluate comparable profitability of
companies, as it excludes the impact of differing capital
structures and tax positions, variations in tangible asset
portfolios and differences in identification and recognition of
intangible assets. It is used to derive the Net debt/EBITDA and
Total indebtedness ratios, and Fixed charge cover APMs.
|
|
Tax measures
|
|
|
|
|
|
Adjusted effective tax
rate
|
Effective tax
rate
|
-
Adjusting items(b)
|
|
-
Adjusted effective tax rate is calculated as total income tax
credit/(charge) excluding the tax impact of adjusting items,
divided by adjusted profit before tax. This APM provides an
indication of the ongoing tax rate across the
Group.
|
|
Balance sheet measures
|
|
|
|
|
Net debt
|
No direct equivalent
|
-
N/A
|
|
-
Net debt excludes the net debt of Tesco Bank and includes the
net debt of Retail discontinued operations to reflect the net debt
obligations of the Retail business.
-
Net debt comprises bank and other borrowings, lease
liabilities and net derivative financial instruments, offset by
cash and cash equivalents, short-term investments, joint venture
loans, and interest and other receivables.
-
It is a useful measure of the progress in generating cash and
strengthening of the Group's balance sheet position, and is a
measure widely used by credit rating agencies.
|
|
Net debt/EBITDA ratio
|
No direct equivalent
|
-
Ratio N/A
|
|
-
Net debt/EBITDA ratio is calculated as Net debt divided by
the rolling 12-month Retail EBITDA. It is a measure of the Group's
ability to meet its payment obligations, showing how long it would
take the Group to repay its current net debt if both net debt and
EBITDA remained constant. It is widely used by analysts and credit
rating agencies.
|
|
Total indebtedness
|
No direct equivalent
|
-
N/A
|
|
-
Total indebtedness is Net debt plus the IAS 19 deficit in any
pension schemes (net of associated deferred tax) to provide
an overall view of the
Group's obligations, including the
long-term commitments to the Group's pension schemes. Pension
surpluses are not included. It is an important measure of the
long-term obligations of the Group and is a measure widely used by
credit rating agencies.
|
|
APM
|
Closest equivalent IFRS
measure
|
Adjustments to reconcile to IFRS
measure
|
|
Definition and purpose
|
|
Total indebtedness
ratio
|
No direct equivalent
|
-
Ratio N/A
|
|
-
Total indebtedness ratio is calculated as Total indebtedness
divided by the rolling 12-month Retail EBITDA. It is a measure of
the Group's ability to meet its payment obligations and is widely
used by analysts and credit rating agencies.
|
|
Fixed charge cover
|
No direct equivalent
|
-
Ratio N/A
|
|
-
Fixed charge cover is calculated as the rolling 12-month
Retail EBITDA divided by the sum of net finance costs (excluding
net
pension finance costs, finance charges payable
on lease liabilities, capitalised interest and fair value
remeasurements on financial instruments) and all lease liability
payments from continuing operations. It is a measure of the Group's
ability to meet its payment obligations and is widely used by
analysts and credit
rating agencies.
|
|
Capex
|
Property, plant and equipment,
intangible asset, and investment property additions, excluding
those from business combinations
|
-
Additions relating to property buybacks and store
purchases
-
Additions relating to decommissioning provisions and similar
items
|
|
-
Capex excludes additions arising from business combinations,
buybacks of properties (typically stores), purchases of store
properties, as well as additions relating to decommissioning
provisions and similar items.
-
Property buybacks and purchases of store properties are
variable in timing, with the number and value of transactions
dependent on opportunities that arise within any given financial
year. Excluding property buybacks and store property purchases
therefore gives an alternative view of trends in capital
expenditure in the Group's ongoing trading operations.
-
Additions relating to decommissioning provisions and similar
items are adjusted because they do not result in near-term cash
outflows.
|
|
Cash flow measures
|
|
|
|
|
Retail free cash flow
|
No direct equivalent
|
-
N/A
|
|
Retail free cash flow includes:
-
Continuing cash flows from operating activities of the Retail
business less adjusting Retail operating cash flows.
-
Retail investing cash flows relating to: the purchase of
property, plant and equipment, investment property and other
long-term assets (excluding property buybacks and store purchases);
purchase of intangible assets; dividends received from Tesco Bank
(excluding special dividends); dividends received from joint
ventures and associates; and interest received.
-
Financing cash flows relating to: market purchase of shares
net of proceeds from shares issued in relation to share schemes;
and Retail repayment of obligations under leases.
-
Directors and management believe this provides a view of free
cash flow generated by the Group's Retail trading operations that
is more predictable and comparable over time and reflects the cash
available to shareholders.
-
This is a key management incentive metric.
|
|
|
|
|
|
|
|
|
| |
(a) Operating profit is presented on the
Group income statement. It is not defined per IFRS, however, is a
generally accepted profit measure.
(b) Refer to Note 3.
APMs: Reconciliation of income statement
measures
As the incomes and expenses
included in debt APMs are calculated using a rolling 12-month
period, the amounts for the 12 months to 24 August 2024 are
not disclosed in the notes to the condensed
consolidated interim financial statements for the current financial
period.
Retail EBITDA
|
Continuing operations
|
|
52 weeks
ended
24
August 2024
£m
|
52 weeks
ended
24
February 2024
£m
|
|
Operating profit
|
|
3,007
|
2,821
|
|
Exclude: Adjusting items
|
|
45
|
8
|
|
Adjusted operating profit
|
|
3,052
|
2,829
|
|
Exclude: Tesco Bank segment adjusted operating
profit
|
|
(271)
|
(148)
|
|
Exclude: Tesco Bank adjusted operating profit
from discontinued operations
|
|
117
|
79
|
|
Retail adjusted operating profit
|
|
2,898
|
2,760
|
|
Include: Retail depreciation and amortisation
before adjusting items
|
|
1,631
|
1,602
|
|
Retail EBITDA
|
|
4,529
|
4,362
|
APMs: Reconciliation of balance sheet
measures
Net debt
Reconciliation from Retail free cash flow to
Net debt
|
|
Notes
|
24
August 2024
£m
|
26
August 2023
£m
|
|
Opening Net debt
|
18
|
(9,764)
|
(10,493)
|
|
|
|
|
|
|
Retail free cash flow
|
|
1,261
|
1,368
|
|
|
|
|
|
|
Other cash movements:
|
|
|
|
|
Own shares purchased for
cancellation
|
2
|
(575)
|
(503)
|
|
Dividends paid to equity holders
|
2
|
(575)
|
(509)
|
|
Special dividends received from Tesco
Bank
|
2
|
-
|
250
|
|
Adjusting items included in operating cash flow
activities
|
2
|
(52)
|
(87)
|
|
Retail repayments of capital element of
obligations under leases
|
2
|
295
|
306
|
|
Retail interest paid on lease
liabilities
|
|
186
|
182
|
|
Retail net other interest
paid/(received)
|
|
58
|
91
|
|
Retail proceeds from sale of property, plant
and equipment, investment property, intangible assets and assets
held for sale
|
2
|
16
|
34
|
|
Cash outflows attributable to property buybacks
and store purchases
|
|
(30)
|
(37)
|
|
Other investing cash movements
|
|
(50)
|
7
|
|
|
|
|
|
|
Non-cash movements in Net debt:
|
|
|
|
|
Retail fair value movements
|
|
(1)
|
(25)
|
|
Retail foreign exchange movements
|
|
21
|
81
|
|
Retail net interest charge
|
|
(64)
|
(94)
|
|
Retail non-cash movements in lease
liabilities
|
|
(397)
|
(473)
|
|
Retail movement in net debt of disposal
group
|
|
-
|
14
|
|
Retail non-cash movement arising from
acquisitions and disposals
|
|
(5)
|
1
|
|
Other non-cash movements
|
|
-
|
(1)
|
|
Closing Net debt
|
18
|
(9,676)
|
(9,888)
|
Net debt/EBITDA and Total indebtedness
ratio
|
|
Notes
|
24
August 2024
£m
|
24
February 2024
£m
|
|
Net debt
|
18
|
9,676
|
9,764
|
|
Retail EBITDA
|
|
4,529
|
4,362
|
|
Net debt/EBITDA ratio
|
|
2.1
|
2.2
|
|
|
|
|
|
|
Net debt
|
18
|
9,676
|
9,764
|
|
Add: Defined benefit pension
deficit, net of deferred tax
|
16
|
320
|
493
|
|
Total indebtedness
|
|
9,996
|
10,257
|
|
Retail EBITDA
|
|
4,529
|
4,362
|
|
Total indebtedness ratio
|
|
2.2
|
2.4
|
Fixed charge cover
|
|
|
52 weeks
ended
24
August 2024
£m
|
52 weeks
ended
24
February 2024
£m
|
|
Net finance costs
|
|
487
|
538
|
|
Exclude: Net pension finance
income/(costs)
|
|
(23)
|
(18)
|
|
Exclude: Fair value remeasurements of financial
instruments
|
|
76
|
38
|
|
Adjusted total finance costs
|
|
540
|
558
|
|
Exclude: Finance charges payable
on lease liabilities
|
|
(376)
|
(373)
|
|
Adjusted total finance cost, excluding
capitalised interest and finance charges payable on lease
liabilities
|
|
164
|
185
|
|
Include: Total lease liability
payments
|
|
992
|
1,000
|
|
Exclude:
Discontinued operations total lease liability payments
|
|
(3)
|
(3)
|
|
|
|
1,153
|
1,182
|
|
Retail EBITDA
|
|
4,529
|
4,362
|
|
Fixed charge cover (ratio)
|
|
3.9
|
3.7
|
Capex
|
|
Notes
|
24
August 2024
£m
|
26
August 2023
£m
|
|
Property, plant and equipment
additions*
|
9
|
422
|
422
|
|
Other intangible asset additions*
|
|
133
|
135
|
|
Exclude: Additions from property
buybacks
|
|
(22)
|
(34)
|
|
Exclude: Additions from store
purchases
|
|
(3)
|
-
|
|
Capex
|
|
530
|
523
|
* Excluding amounts acquired through business
combinations.
APMs: Reconciliation of cash flow measures
|
|
Notes
|
26 weeks
ended
24
August 2024
£m
|
26 weeks
ended
26
August 2023
£m
|
|
Cash generated from/(used in) operating
activities
|
2
|
2,043
|
2,312
|
|
Exclude: Cash (generated
from)/used in operating activities in Tesco Bank
|
2
|
39
|
(63)
|
|
Exclude: Cash (generated
from)/used in operating activities in discontinued
operations
|
2
|
(139)
|
(181)
|
|
Retail cash generated from/(used
in) operating activities
|
2
|
1,943
|
2,068
|
|
Exclude: Retail adjusting net cash
(generated from)/used in operating activities
|
2
|
52
|
87
|
|
Retail adjusted cash generated
from/(used in) operating activities
|
|
1,995
|
2,155
|
|
|
|
|
|
|
Include the following cash flows
generated from/(used in) investing activities:
|
|
|
|
|
Retail purchase of property, plant and
equipment, investment property and other long-term assets - other
capital expenditure*
|
2
|
(464)
|
(472)
|
|
Retail purchase of intangible assets
|
2
|
(130)
|
(123)
|
|
Dividends received from joint ventures and
associates
|
2
|
2
|
6
|
|
Retail interest received
|
2
|
136
|
114
|
|
Include the following cash flows generated
from/(used in) financing activities:
|
|
|
|
|
Own shares purchased for share schemes, net of
cash received from employees
|
2
|
17
|
(6)
|
|
Retail repayment of capital element of
obligations under leases
|
2
|
(295)
|
(306)
|
|
Retail free cash flow
|
|
1,261
|
1,368
|
* Excludes
property buybacks and store purchases.
Glossary - Other
Expected credit loss (ECL)
Credit loss represents the portion
of the debt that a company is unlikely to recover. The ECL is the
projected future losses based on probability-weighted
calculations.
ESG
Environmental, social and
governance.
MTN
Medium-term note.
Net promoter score (NPS)
This is a loyalty measure based on
a single question requiring a score between 0-10. The NPS is
calculated by subtracting the percentage of detractors (scoring
0-6) from the percentage of promoters (scoring 9-10). This
generates a figure between -100 and 100 which is the
NPS.
Independent review report to Tesco
PLC
Conclusion
We have been engaged by the company to review
the condensed set of financial statements in the half-yearly
financial report for the 26 weeks ended 24 August 2024 which
comprises the Group income statement, the Group statement of
comprehensive income/(loss), the Group balance sheet, the Group
statement of changes in equity, the Group cash flow statement and
related notes 1 to 20.
Based on our review, nothing has come to our
attention that causes us to believe that the condensed set of
financial statements in the half-yearly financial report for the 26
weeks ended 24 August 2024 is not prepared, in all material
respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct
Authority.
Basis for Conclusion
We conducted our review in accordance with
International Standard on Review Engagements (UK) 2410 "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Financial Reporting Council for use in
the United Kingdom (ISRE (UK) 2410). A review of interim financial
information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial
statements of the group are prepared in accordance with United
Kingdom adopted international accounting standards. The condensed
set of financial statements included in this half-yearly financial
report has been prepared in accordance with United Kingdom adopted
International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less
extensive than those performed in an audit as described in the
Basis for Conclusion section of this report, nothing has come to
our attention to suggest that the directors have inappropriately
adopted the going concern basis of accounting or that the directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410; however
future events or conditions may cause the entity to cease to
continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
In preparing the half-yearly financial report,
the directors are responsible for assessing the group's ability to
continue as a going concern, disclosing as applicable, matters
related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of
the financial information
In reviewing the half-yearly financial report,
we are responsible for expressing to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report. Our Conclusion, including our Conclusion Relating
to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in
accordance with ISRE (UK) 2410. Our work has been undertaken so
that we might state to the company those matters we are required to
state to it in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company, for our
review work, for this report, or for the conclusions we have
formed.
Deloitte LLP
Statutory Auditor
London, England
2 October 2024
Appendices
Appendix 1
One-year like-for-like sales
performance (exc. VAT, exc. fuel)
|
|
Like-for-like sales
|
|
|
H1
2023/24
|
H2
2023/24
|
FY
2023/24
|
Q1
2024/25
|
Q2
2024/25
|
HY
2024/25
|
|
UK & ROI
|
8.4%
|
6.2%
|
7.3%
|
3.6%
|
2.5%
|
3.1%
|
|
UK
|
8.7%
|
6.8%
|
7.7%
|
4.6%
|
3.5%
|
4.0%
|
|
ROI
|
6.9%
|
6.7%
|
6.8%
|
4.4%
|
5.1%
|
4.7%
|
|
Booker
|
7.5%
|
3.2%
|
5.4%
|
(1.3)%
|
(2.5)%
|
(1.9)%
|
|
Central Europe
|
0.9%
|
(0.5)%
|
0.2%
|
0.6%
|
0.6%
|
0.6%
|
|
Total Retail
|
7.8%
|
5.7%
|
6.8%
|
3.4%
|
2.4%
|
2.9%
|
Appendix 2
Total sales performance (exc. VAT, exc. fuel)
|
|
Actual rates
|
|
Constant rates
|
|
|
H1
2023/24
|
H2
2023/24
|
FY
2023/24
|
H1
2024/25
|
|
H1
2023/24
|
H2
2023/24
|
FY
2023/24
|
H1
2024/25
|
|
UK & ROI
|
8.9%
|
6.3%
|
7.6%
|
3.6%
|
|
8.8%
|
6.4%
|
7.6%
|
3.7%
|
|
UK
|
9.1%
|
7.2%
|
8.1%
|
4.7%
|
|
9.1%
|
7.2%
|
8.1%
|
4.7%
|
|
ROI
|
13.0%
|
6.1%
|
9.3%
|
3.6%
|
|
10.0%
|
7.3%
|
8.5%
|
5.6%
|
|
Booker
|
6.9%
|
2.2%
|
4.6%
|
(1.7)%
|
|
6.9%
|
2.2%
|
4.6%
|
(1.7)%
|
|
Central Europe
|
6.7%
|
(0.2)%
|
3.1%
|
(4.2)%
|
|
1.4%
|
(0.1)%
|
0.6%
|
0.9%
|
|
Total Retail
|
8.7%
|
5.8%
|
7.3%
|
3.0%
|
|
8.2%
|
5.9%
|
7.0%
|
3.5%
|
Appendix 3
Country detail - Retail
|
|
Revenue
(exc. VAT, inc. fuel)
|
|
|
|
|
|
Local
currency
(m)
|
£m
|
|
Average
exchange
rate
|
Closing
exchange
rate
|
|
UK
|
26,077
|
26,077
|
|
1.0
|
1.0
|
|
ROI
|
1,701
|
1,449
|
|
1.2
|
1.2
|
|
Booker
|
4,623
|
4,623
|
|
1.0
|
1.0
|
|
Czech Republic
|
20,942
|
710
|
|
29.5
|
29.6
|
|
Hungary
|
324,882
|
705
|
|
460.8
|
464.7
|
|
Slovakia
|
810
|
690
|
|
1.2
|
1.2
|
Appendix 4
UK sales area by size of store
|
|
|
24
August 2024
|
|
|
|
24
February 2024
|
|
|
Store size (sq. ft.)
|
No. of
stores
|
Million
sq. ft.
|
% of
total
sq.
ft.
|
|
No. of
stores
|
Million
sq. ft.
|
% of
total
sq.
ft.
|
|
0-3,000
|
2,693
|
5.8
|
14.9%
|
|
2,675
|
5.8
|
14.9%
|
|
3,001-20,000
|
279
|
2.9
|
7.5%
|
|
279
|
2.9
|
7.5%
|
|
20,001-40,000
|
288
|
8.3
|
21.3%
|
|
288
|
8.3
|
21.3%
|
|
40,001-60,000
|
182
|
8.8
|
22.6%
|
|
182
|
8.8
|
22.6%
|
|
60,001-80,000
|
119
|
8.4
|
21.6%
|
|
119
|
8.4
|
21.6%
|
|
80,001-100,000
|
45
|
3.7
|
9.5%
|
|
45
|
3.7
|
9.5%
|
|
Over 100,000
|
8
|
1.0
|
2.6%
|
|
8
|
1.0
|
2.6%
|
|
Total*
|
3,614
|
38.9
|
100.0%
|
|
3,596
|
38.9
|
100.0%
|
* Excludes Booker and franchise
stores.
Appendix 5
Actual Group space - store
numbers(a)
|
|
2023/24
year end
|
Openings
|
Closures/
disposals
|
Net
gain/
(reduction)(b)
|
As at
24
August
2024
|
Repurposing/
extensions(c)
|
|
Large
|
809
|
1
|
(1)
|
-
|
809
|
-
|
|
Convenience
|
2,048
|
19
|
(3)
|
16
|
2,064
|
-
|
|
Dotcom only
|
6
|
-
|
-
|
-
|
6
|
-
|
|
Total Tesco
|
2,863
|
20
|
(4)
|
16
|
2,879
|
-
|
|
One Stop(d)
|
733
|
6
|
(4)
|
2
|
735
|
-
|
|
Booker
|
190
|
-
|
-
|
-
|
190
|
-
|
|
UK(d)
|
3,786
|
26
|
(8)
|
18
|
3,804
|
-
|
|
ROI
|
170
|
7
|
-
|
7
|
177
|
-
|
|
UK & ROI(d)
|
3,956
|
33
|
(8)
|
25
|
3,981
|
-
|
|
Czech
Republic(d)
|
184
|
1
|
-
|
1
|
185
|
5
|
|
Hungary
|
197
|
-
|
-
|
-
|
197
|
26
|
|
Slovakia(d)
|
169
|
10
|
-
|
10
|
179
|
11
|
|
Central Europe(d)
|
550
|
11
|
-
|
11
|
561
|
42
|
|
Group(d)
|
4,506
|
44
|
(8)
|
36
|
4,542
|
42
|
|
UK (One Stop)
|
317
|
25
|
(9)
|
16
|
333
|
-
|
|
Czech Republic
|
119
|
1
|
(4)
|
(3)
|
116
|
-
|
|
Slovakia
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Franchise stores
|
436
|
26
|
(13)
|
13
|
449
|
-
|
|
Total Group
|
4,942
|
70
|
(21)
|
49
|
4,991
|
42
|
Actual Group space - '000 sq.
ft.(a)
|
|
2023/24
year end
|
Openings
|
Closures/
disposals
|
Repurposing/
extensions(c)
|
Net
gain/
(reduction)
|
As at
24
August
2024
|
|
Large
|
31,505
|
10
|
(16)
|
-
|
(6)
|
31,499
|
|
Convenience
|
5,455
|
54
|
(13)
|
-
|
41
|
5,496
|
|
Dotcom only
|
716
|
-
|
-
|
-
|
-
|
716
|
|
Total Tesco
|
37,676
|
64
|
(29)
|
-
|
35
|
37,711
|
|
One Stop(d)
|
1,208
|
9
|
(6)
|
-
|
3
|
1,211
|
|
Booker
|
8,094
|
-
|
-
|
-
|
-
|
8,094
|
|
UK(d)
|
46,978
|
73
|
(35)
|
-
|
38
|
47,016
|
|
ROI
|
3,499
|
43
|
-
|
-
|
43
|
3,542
|
|
UK & ROI(d)
|
50,477
|
116
|
(35)
|
-
|
81
|
50,558
|
|
Czech
Republic(d)
|
4,101
|
25
|
-
|
(21)
|
4
|
4,105
|
|
Hungary
|
5,372
|
-
|
-
|
(61)
|
(61)
|
5,311
|
|
Slovakia(d)
|
3,213
|
19
|
-
|
(25)
|
(6)
|
3,207
|
|
Central Europe(d)
|
12,686
|
44
|
-
|
(107)
|
(63)
|
12,623
|
|
Group(d)
|
63,163
|
160
|
(35)
|
(107)
|
18
|
63,181
|
|
UK (One Stop)
|
459
|
29
|
(12)
|
-
|
17
|
476
|
|
Czech Republic
|
108
|
1
|
(3)
|
-
|
(2)
|
106
|
|
Slovakia
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Franchise stores
|
567
|
30
|
(15)
|
-
|
15
|
582
|
|
Total Group
|
63,730
|
190
|
(50)
|
(107)
|
33
|
63,763
|
(a) Continuing operations.
(b) The net gain/(reduction) reflects
the number of store openings less the number of store
closures/disposals.
(c) Repurposing of retail selling
space.
(d) Excludes franchise
stores.
Group space forecast to 22 February 2025 -
'000 sq. ft.(a)
|
|
As at
24
August
2024
|
Openings
|
Closures/ disposals
|
Repurposing/
extensions(b)
|
Net
gain/
(reduction)(c)
|
2024/25
year end
|
|
Large
|
31,499
|
29
|
(44)
|
5
|
(10)
|
31,489
|
|
Convenience
|
5,496
|
120
|
(22)
|
-
|
98
|
5,594
|
|
Dotcom only
|
716
|
-
|
-
|
-
|
-
|
716
|
|
Total Tesco
|
37,711
|
149
|
(66)
|
5
|
88
|
37,799
|
|
One Stop(d)
|
1,211
|
29
|
(2)
|
-
|
27
|
1,238
|
|
Booker
|
8,094
|
-
|
-
|
-
|
-
|
8,094
|
|
UK(d)
|
47,016
|
178
|
(68)
|
5
|
115
|
47,131
|
|
ROI
|
3,542
|
39
|
-
|
-
|
39
|
3,581
|
|
UK &
ROI(d)
|
50,558
|
217
|
(68)
|
5
|
154
|
50,712
|
|
Czech
Republic(d)
|
4,105
|
37
|
(35)
|
1
|
3
|
4,108
|
|
Hungary
|
5,311
|
7
|
-
|
(25)
|
(18)
|
5,293
|
|
Slovakia(d)
|
3,207
|
24
|
-
|
(14)
|
10
|
3,217
|
|
Central Europe(d)
|
12,623
|
68
|
(35)
|
(38)
|
(5)
|
12,618
|
|
Group(d)
|
63,181
|
285
|
(103)
|
(33)
|
149
|
63,330
|
|
UK (One Stop)
|
476
|
61
|
-
|
-
|
61
|
537
|
|
Czech Republic
|
106
|
-
|
(1)
|
-
|
(1)
|
105
|
|
Slovakia
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Franchise stores
|
582
|
61
|
(1)
|
-
|
60
|
642
|
|
Total Group
|
63,763
|
346
|
(104)
|
(33)
|
209
|
63,972
|
(a) Continuing operations.
(b) Repurposing of retail selling
space.
(c) The net gain/(reduction) reflects
the number of store openings less the number of store
closures/disposals and repurposing/extensions.
(d) Excludes franchise
stores.