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Tesco Plc FY Pretax Profit Rises; Sales Up 11.5% - Quick Facts

Tesco Plc (TSCO.L,TSCDY.PK) reported pretax profit of 1.67 billion pounds for the 52 weeks ended 23 February 2019 compared to 1.30 billion pounds, previous year. Earnings per share from continuing operations was 13.55 pence compared to 12.11 pence. Statutory operating profit was 2.15 billion pounds, up 17.1% year-on-year. Group operating profit before exceptional items and amortisation of acquired intangibles was 2.21 billion pounds, up 33.5% at constant exchange rates and up 34.0% at actual rates. EPS before exceptional and other items increased to 15.40 pence from 11.90 pence.

Fiscal year revenue was 63.9 billion pounds compared to 57.5 billion pounds, an increase of 11.0%. On a continuing operations basis, Group sales were 56.9 billion pounds, up 11.5% from prior year.

The Group proposed to pay a final dividend of 4.10 pence per ordinary share. This takes the total dividend for the year to 5.77 pence per ordinary share, up 92.3% year-on-year, following the payment of an interim dividend of 1.67 pence per ordinary share in November 2018. The proposed final dividend was approved by the Board of Directors on 9 April 2019. The final dividend will be paid on 21 June 2019 to shareholders who are on the register of members at close of business on 17 May 2019.

Tesco now expects to reach a dividend cover level of around two times earnings (on a post-IFRS 16 basis) in the 2019/20 financial year. The Group said it would then expect to maintain this level going forward, expressed as an earnings pay-out ratio of around 50%, with an anticipated split of broadly one-third to two-thirds between interim and final dividends in any given year.

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