Tesco has revealed that its profits have fallen by around one-fifth in the past year after coronavirus costs of nearly £ 900million offset higher sales.
The supermarket giant said on Wednesday morning that pre-tax profits had fallen to £ 825m for the 12 months ending in February, from £ 1.03bn the year before.
He said profits had been weighed down by £ 892million in costs related to Covid and the company’s decision to hand the government back £ 585million in trade tariff relief.
It had benefited from an increase in demand for groceries during the pandemic, with more meals being eaten at home amid restrictions in the hospitality sector and changes in work habits.
Group sales excluding fuel rose 7% to £ 53.4 billion for the year, supported by surging online sales.
Online sales jumped 77% to £ 6.3 billion in the UK as the company doubled its delivery capacity to meet growing demand from homebound customers.
Chief Executive Officer Ken Murphy said: “Tesco has demonstrated incredible strength and agility throughout the pandemic.
“By putting our customers and colleagues first, we’ve built a stronger business.
“While the pandemic is not yet over, we are well positioned to continue the momentum of our business.
“We have strengthened our brand, increased customer satisfaction and improved the perception of value.”
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This notice was published: 2021-04-14 07:30:43