Free Trial

Tesco (TSCOLN; Baa3, BBB-, BBB-; S) Q1 (3m ending May) Trading update

CONSUMER STAPLES

1Q results are firm/in-line & FY guidance (12m to Feb) is unch at adj. retail operating profit >£2.8b and FCF of £1.4-£1.8b. Cheap views on the €31s and new £34s still valid.

Group retail LFL sales +3.4% to £15.3b.

  • UK retail: +4.6% to £11.4b, market share gains +52bps to 27.6%. Food sales up +5% "including strong volume growth", non-food +0.7% driven by clothing. Online up +8.9% on volume and Whoosh (its delivery service).
  • Booker: -1.3% to £2.2b, tobacco -5.2%, retail ex. tobacco +1.0%, core catering +2.2%.
  • Central Europe; +0.6% to £0.98b, food volumes +2.8%.
  • Republic of Ireland: +4.4% to £0.7b, market share +59bps, food sales +5.1%.

Tesco bank revenue £271m and only includes retained insurance and money services business. UK fuel -4.4% to £1.6b.

Earnings call 9am, 1H results (6m to August) comes 3rd of October.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.