Tesco 2015 Annual Report Download - page 13

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4. Grow sales 5. Deliver profit 6. Improve operating
cash flow
If we do a better job for our customers,
we will grow sales and achieve a stronger
financial position.
Last year, our Group sales** declined by
(1.4)%, reflecting a challenging backdrop
and our own underperformance in the UK.
While we must be prepared for further
volatility, our focus will remain on our
customers and we’re working hard to have
a positive impact on their shopping trip.
As customers recommend us and
keep returning to shop with us, our
profitability will improve and we will
achieve a stronger financial position.
Group trading profit declined to £1.4bn in
2014/15, driven by a challenging year for
the UK business. We have taken action to
start to restore our competitiveness and
have committed to reinvest any savings
back into the shopping trip to help our
business be stronger over the long term.
We need a strong cash flow so we can
keep the business running and invest
in our customers and the shopping trip.
In 2014/15, our retail cash flow declined
to £1.9bn, reflecting both an extremely
challenging year for Tesco and a year
in which we began a process of
considerable change.
£69.7bn
£55.9bn
(1.3)%*
(1.4)%*
(57.5)%* (59.6)%*
£1,390m £1,860m
* Growth is on a 52 week basis – see the Glossary on page 155.
** Excluding VAT, fuel and IFRIC 13.
Sales including fuel and VAT
Sales excluding fuel and VAT
11Tesco PLC Annual Report and Financial Statements 2015
Other informationGovernance Financial statementsStrategic report