Tesco: shares surge on annual results, dividend
(CercleFinance.com) - Tesco, Britain's biggest retailer, smashed earnings forecasts for its fiscal year 2017/18, boosted by synergies and like-for-like sales growth.
The supermarket group, which has now completed its merger with Booker, said on Tuesday that group sales grew by 2.3% to 51 billion pounds in the financial year to 30 March.
Group operating profit before extraordinary items reached 1.64 billion pounds, up 25% on last year at constant exchange rates, compared to the consensus of 1.60 billion pounds.
UK & ROI margin - a key focus for the market - was also above expectations, at 2.3% in the fiscal year, compared to the consensus of 2.2%.
Analysts at Invest Securities said that the results are "satisfactory" given the current context.
"What if the UK ultimately came as a pleasant surprise for food retail in this period that is full of adversity for continental Europe?" the Parisian broker wondered.
Even better, Tesco plans to resume dividend payments, proposing a full-year dividend of 3 pence per share, to reflect "improved performance" and management confidence.
Tesco shares were up 4.8% at 220.30 pence, with the group's market capitalisation reaching 20.4 billion pounds (around 23 billion euros) after these results were published.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The supermarket group, which has now completed its merger with Booker, said on Tuesday that group sales grew by 2.3% to 51 billion pounds in the financial year to 30 March.
Group operating profit before extraordinary items reached 1.64 billion pounds, up 25% on last year at constant exchange rates, compared to the consensus of 1.60 billion pounds.
UK & ROI margin - a key focus for the market - was also above expectations, at 2.3% in the fiscal year, compared to the consensus of 2.2%.
Analysts at Invest Securities said that the results are "satisfactory" given the current context.
"What if the UK ultimately came as a pleasant surprise for food retail in this period that is full of adversity for continental Europe?" the Parisian broker wondered.
Even better, Tesco plans to resume dividend payments, proposing a full-year dividend of 3 pence per share, to reflect "improved performance" and management confidence.
Tesco shares were up 4.8% at 220.30 pence, with the group's market capitalisation reaching 20.4 billion pounds (around 23 billion euros) after these results were published.
Copyright (c) 2018 CercleFinance.com. All rights reserved.