26 weeks ended 28 August 2010 H1 2010/11 Growth vs. H1 2009/10
Group sales (inc. VAT)* £32,914m 8.3%
Group revenue (ex. VAT) £29,755m 7.1%
Group trading profit £1,692m 9.1%
Underlying profit before tax £1,792m 14.1%
Group profit before tax £1,596m 12.5%
Underlying diluted earnings per share 16.62p 12.3% **
Diluted earnings per share 14.72p 13.8%
Dividend per share 4.37p 12.3%
Terry Leahy, Chief Executive, comments:
"The global economic headwinds of the last two years are being replaced by the tailwinds of recovery in most of our markets and this is helping our International businesses to resume strong sales and profit momentum. Our important Asian markets in particular are emerging strongly from recession and we are now benefiting from the substantial investment we continued to commit to the region during the downturn.
In the UK, we have coped very well with subdued demand and modest levels of industry like-for-like growth, helped by excellent productivity, a pleasing performance from new stores and good growth from our Services businesses, particularly online and Tesco Bank. Economic recovery in the UK is slow and steady and I believe our investment in making the shopping trip even better for customers means that Tesco is well-placed to grow in this environment."
HIGHLIGHTS
· 8.3% increase in Group sales*to £32.9bn
· 9.1% growth in Group trading profit, including 30% growth in Asia
· 14.1% rise in underlying profit before tax
· Underlying diluted EPS growth of 12.3%**; dividend per share growth of 12.3%
· Net debt to reduce to £7.0bn by year-end, ahead of plan; £926m of debt repaid early
· Market share gains and sharply improving like-for-like trends in International markets
· Fresh & Easy sales up 47%; planned to reach profitability during 2012/13
· Opened 2.7m sq ft of net new Group space; 6.4m planned in H2, 73% outside the UK
· Clubcard is increasing customer loyalty- in the UK and Internationally
· £1.2bn of property divestments at very attractive initial yields, below 5%
· We are on track to hit our 2010/11 carbon targets - emissions reduced 8% in Q1
· Plans to create 16,000 jobs this year, including 9,000 in the UK
* Group sales (inc. VAT) exclude the accounting impact of IFRIC13 (Customer Loyalty Programmes).
** Underlying diluted EPS growth calculated on a constant tax rate basis.
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