Tesco 2002 Annual Report Download - page 5

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TESCO PLC 3
Total shareholder return, which is measured as
the percentage change in the share price plus the
dividend, has been 20.2% over the last five years,
compared to the FTSE 100 average of 6.2%. Over
the last three years it has been 15.0%, compared to
the FTSE 100 average of (2.7)%. In the last year, total
shareholder return in Tesco was (2.7)% compared
to the FTSE 100 average of (14.3)%.
UK
UK sales grew by 9.1% to £21,685m (2001 –
£19,884m) of which 6.2% came from existing
stores and 2.9% from net new stores. Existing
store growth has been driven by strong vol-
umes and we have seen 0.6% deflation in our
core business.
Our customer focused strategy and commit-
ment to value have delivered increased market
share and we see plenty of opportunity for
future growth.
UK operating profit was 10.3% higher at
£1,213m (2001 – £1,100m) with an operating
margin held flat at 6.0%.
The tesco.com operations achieved sales
of £356m (2001 – £237m) and excluding USA
start-up costs, made a profit of £0.4m (2001 –
loss £9m).
As part of our store development pro-
gramme we opened 55 new stores comprising
seven Extras, 17 Superstores, one Metro and 30
Express stores. Including extensions and refits we
opened 1.3m sq ft of new space and expect to
open a further 1.5m sq ft in the coming year.
REST OF EUROPE
In the Rest of Europe sales rose by 25.6% to
£2,475m (2001 – £1,970m) and contributed an
operating profit of £90m, up from £70m last year.
Sales in the Republic of Ireland grew by
8.9%, and our customers continue to benefit
from the extended range, improved service and
better value.
In Central Europe sales were up 39.4%. We
opened 16 hypermarkets in the year giving us 52
in total.This gives us total space in Central Europe
of 6.4m sq ft.
ASIA
In the year, our Asian businesses had sales of
£1,494m (2001 – £919m), up 62.6% on the
previous year and made an operating profit of
£29m (2001 – £4m).
Our profitable business in Thailand,
comprising 33 hypermarkets, had strong sales
growth of 36.3%. We currently have 3.8m sq ft
of selling space in Thailand which will increase to
4.7m sq ft by the end of next year.
In South Korea we are ahead of our profit
plan. We opened seven hypermarkets, giving us
14 in total, with sales up 124.0%.
In Taiwan we opened two hypermarkets
bringing our total to three. Profit from Thailand
and South Korea has been partly offset by start-
up losses in Taiwan.
In Malaysia we plan to open our first
hypermarket in May 2002.
JOINT VENTURES AND ASSOCIATES
Our total share of profit from joint ventures and
associates was £42m compared to £21m last
year. Within this, our share of Tesco Personal
Finance pre-tax profit has risen sharply to £20m
(2001 – £3m).
98 99 00 0201
UK SALES AREA OPENED
000 sq ft
1,296
1,298
1,216
837
680
98 99 00 0201
NUMBER OF INTERNATIONAL
HYPERMARKETS
102
68
38
22
2
TESCO PERSONAL FINANCE
PRE-TAX PROFIT/(LOSS)
£m
40
6
(8)
(28)
99 00 01 02