Tesco returns to profit thanks to UK sales
The supermarket giant reported a £162m statutory pre-tax profit for the year to February 27 with UK like-for-like sales up 0.9% in the fourth quarter.
The results follow last year's £6.3bn loss, the worst results in its history.
Operating profit before exceptional items rose slightly to £944m for the year. Total group sales inched up 0.1% to £48.4bn.
CEO Dave Lewis said the group had "regained competitiveness in the UK".
"Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case," he added.
Despite the progress, Lewis warned the market remained "challenging and uncertain" and said its continued investment in prices to remain competitive would slow its profit improvement "particularly in the first half".
In an interview with the BBC, Lewis said he wasn't "at all naive about the challenges that still lie ahead of us".
"We have to invest in our business in a time when the market is deflating and there are some significant challenges ahead," he said
Operating profit before exceptional items rose slightly to £944m for the year. Total group sales inched up 0.1% to £48.4bn. ■