Preliminary Results 2015/16

13 April 2016

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Colleague interview with Dave Lewis and Alan Stewart

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Significant progress on all three transformation priorities

  • UK like-for-like sales growth of 0.9% in 4Q; Group like-for-like sales growth of 1.6% in 4Q
  • £6.2bn reduction in total indebtedness, including contribution from sale of Homeplus in Korea
  • Customer, colleague, supplier measures all improved

Guided by a clear purpose, ‘serving shoppers a little better every day’

  • UK customer satisfaction up 5% over the course of the year
  • UK volumes up 3.3% in 4Q; UK transactions up 2.8% in 4Q
  • International volumes up 5.5% in 4Q

Achieved what we set out to do

  • £944m operating profit before exceptional items
  • Retail operating cash flow of £2.6bn
  • Initial £400m cost saving programme delivered
  • UK & ROI property now 47% freehold (+6%) following two further transactions in Feb 2016

Improving trends across the Group

  • Positive and improving like-for-like sales growth trends in all regions: UK, ROI, Europe and Asia
  • Improving sales performance in all formats and categories
  • Strong growth in Tesco Bank customer deposits and lending
  • Continued growth at Tesco Mobile, the UK’s largest MVNO - now 4.6m customers

Clear commitment to the customer

  • The customer is and always will be our prime focus
  • Continuing to invest to improve the competitiveness of our offer
  • Seven exclusive fresh food brands launched in March 2016