Tesco Record profits

Tesco Record profits
19th Apr 2011

 

SUPERMARKET giant Tesco has reported record profits of £3.8bn with the bulk coming from Asian operators - contributing to almost 70 per cent of profit growth for the year reports the Farmers Guardian.

Trading profits in Asia were up 30 per cent, offsetting a disappointing performance in the chain’s core UK market, which accounts for two-thirds of its profits.

Total group sales were £68bn and in the UK sales grew 5.5 per cent to £45bn, with trading profits ahead by 3.8 per cent to £2.5bn.

But the supermarket’s new boss Philip Clarke, who took over from Terry Leahy in March, said the firm’s UK performance was not good enough.

“We didn’t achieve our planned growth in the year and this was only partly attributable to the deterioration in the consumer environment during the second half,” he said.

“We can do better and we are taking action in key areas - for example, to drive a faster rate of product innovation and to improve the sharpness of our communication to customers.”

Announcing the 2010/2011 full year results, Mr Clarke said Asia and Europe has made excellent progress although the firm still had a long way to go before it reached the same success in America.

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