Tesco 2013 Annual Report Download - page 24

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20 Tesco PLC Annual Report and Financial Statements 2013
Financial review
£72.4bn
Group sales
£3.5bn
Group trading profit
35.97p
Underlying diluted
earnings per share
14.76p
Full year dividend per
share maintained
Laurie McIlwee Chief Financial Officer
“ As we adapt to ensure we deliver on our
objective to be the best multichannel retailer
for our customers, we are realistic in our
approach to growth and returns. We can
therefore offer clarity to shareholders about
how we intend to deliver an appropriate
balance of growth and returns in the
years ahead.”
Group results 2012/13 (on a continuing operations basis)
52 weeks ended 23 February 2013 2012/13
Growth (actual
exchange rates)
Growth (constant
exchange rates)
Group sales (inc. VAT)*£72,363m 1.3% 2.5%
Sales growth exc. petrol 1.8% 3.1%
Group revenue
(exc. VAT, inc. IFRIC 13)
£64,826m 1.4% 2.5%
Group trading profit £3,453m (13.0)% (12.3)%
– UK £2,272m (8.3)% (8.3)%
– Asia £661m (10.3)% (9.8)%
– Europe £329m ( 37. 8)% (33.3)%
– Tesco Bank £191m (15.1)% (15.1)%
Underlying profit before tax £3,549m (14.5)% (14.0)%
Underlying diluted earnings
per share
35.97p (14.0)%** n/a
ROCE (adjusted for one-off items) 12.7% (200)bp n/a
Capex £3.0bn down
19.0%
down
18.1%
Statutory profit before tax includes the following one-off items:
– UK property write-down £(804)m
– Goodwill impairment (Poland, Czech Republic, Turkey) £(495)m
– Increased provision for PPI (Tesco Bank) (inc. H1 £(30)m) £(115)m
Statutory profit before tax £1,960m (51.5)% n/a
United States treated as discontinued, with restructuring and other one-off costs
of £(1.0) billion.
* Group sales (inc. VAT) exclude the accounting impact of IFRIC 13.
** Underlying diluted EPS growth calculated on a constant tax rate basis; (10.8)%
at actual tax rates.
Group results and strategic update
It has been a year in which we have taken decisive action to focus our
efforts on those markets where we can have a leadership position.
We exited Japan and launched our strategic review of the United
States, while at the same time taking a more measured approach
to our growth in China. We also set an appropriate pace of migration
for the Bank, keeping it focused on the needs of our most loyal
customers. Most importantly, we have begun the essential process
of getting the UK business back on track, making sure we protect
and build on one of the most important leadership positions
we have.
Group trading profit declined by (13.0)%, reflecting our investment
in the UK, the impact of regulatory changes in South Korea and the
challenging economic conditions in Europe. This trading performance
coupled with reduced JV income and higher net finance costs led to
a decline in Group underlying profit before tax of (14.5)%.
Visit www.tescoplc.com/ar2013 to hear
more from Laurie McIlwee and other
members of the leadership team.