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Tesco H1 Profit Surges, Sales Rise; Sees Operating Margin Growth Ahead

Retailer Tesco plc (TSCO.L,TSCDY.PK) reported Wednesday that its first-half profit before tax surged to 562 million pounds from 71 million last year. Earnings per share climbed to 5.21 pence from 0.42 pence a year ago.

Earnings per share before items were 5.46 pence, compared to prior year's 3.19 pence.

Operating profit climbed 71.8 percent from last year to 885 million pounds, and adjusted operating profit grew 27.3 percent to 759 million pounds.

Revenue increased 3.7 percent to 28.3 billion pounds from 27.3 billion pounds a year ago. On a constant currency basis, revenues grew 1.4 percent.

Group sales, excluding VAT and fuel, increased 3.3 percent to 25.2 billion pounds. UK like-for-like sales went up 2.2 percent.

Further, the company said its interim dividend has been set at 1.0 pence per ordinary share, to be paid on November 24 to shareholders on the register of members at close of business on October 13.

Looking ahead, the company said it is making good progress towards the medium-term ambitions shared in October 2016 and remain firmly on track to reduce costs by 1.5 billion pounds, generate 9 billion pounds of retail cash from operations and improve operating margins to between 3.5% and 4.0% by 2019/20.

by RTTNews Staff Writer

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