British supermarket chain Tesco Plc (TSCDY.PK, TSCO.L) posted a plunge in full-year pre-tax profit to 1.96 billion pounds, from the prior year's 4.04 billion pounds, reflecting the impact of several significant one-off charges; with underlying pre-tax profit on continuing operations dropping 14.5% year-over-year to 3.55 billion pounds, from 4.15 billion pounds.
Profit attributable to owners of the parent plummeted to 124 million pounds, from the prior-year figure of 2.81 billion pounds. On a per share basis, annual earnings stood at 1.54 pence, down sharply from 34.88 pence in the previous year. Underlying earnings per share, on a continuing basis, were 35.97 pence this year, a 10.8% decline compared with 40.31 pence a year ago.
However, Group sales, including VAT, went up 1.3% to 72.4 billion pounds, from last year's 71.4 billion pounds. At constant exchange rates, sales rose by 2.5%, including petrol, and 3.1% excluding petrol. Revenue from continuing operations for the year reached 64.83 billion pounds, up 1.4% from 63.92 billion pounds a year ago.
The company, based on the progress so far with its strategic review of Fresh & Easy, including the indications of interest received from third parties, has confirmed that the outcome of the review would be an exit from the United States. Tesco said United States is treated as discontinued, with restructuring and other one-off costs of 1.0 billion pounds.
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