Tesco 1Q Sales Boosted By Booker Acquisition -- Update

By Maryam Cockar 
 

Tesco PLC (TSCO.LN) said Friday that it delivered positive like-for-like sales growth for a tenth consecutive period in the first quarter, boosted by the recent acquisition of food wholesaler Booker Group PLC.

The U.K.'s biggest grocer by market share said for the 13 weeks ended May 26, group like-for-like sales growth was 1.8% compared with 1.0% growth a year earlier.

Like-for-like sales at Booker, which the company recently bought for 3.70 billion pounds ($4.9 million), increased 14.3% in the period, driven by new contract wins.

However, the company said same-store sales growth for its core U.K. unit slowed to 2.1% versus 2.3% growth the previous year due to adverse weather conditions in March.

U.K. and Ireland like-for-like sales combined increased 3.5% compared with 2.2% growth a year earlier.

The company said Central Europe like-for-like sales fell 1% in the quarter, due to changes to Sunday trading regulations in Poland, which resulted in six fewer trading days and changes to public holiday opening times in Slovakia.

There was continued weakness in Asia with like-for-like sales down 9% after a decision last year to remove bulk-selling of stock was annualized in mid-April. However, the sales performance in Asia improved toward the end of the quarter, the company said.

"Our growth plans are on track and we are pleased with the momentum in the business. We remain well-placed to serve our customers better and deliver on our medium-term financial ambitions. We are delighted with initial progress on Booker, and are focused on delivering the synergy benefits that our merger brings," Chief Executive Dave Lewis said.

At 0909 GMT, Tesco shares were up 5.60 pence, or 2.2%, at 255.40 pence.

Write to Maryam Cockar at [e-mail]

(END) Dow Jones Newswires

June 15, 2018 05:34 ET (09:34 GMT)

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