Tesco Fiscal Year 2020 Pretax Profit Fell, Dividends Confirmed -- Earnings Review

By Matteo Castia

Tesco PLC on Wednesday reported its results for fiscal 2020. Here's what we watched:

REVENUE: Tesco's revenue for the year rose to 64.76 billion pounds ($79.74 billion), surpassing analysts' expectations on FactSet of GBP64.36 billion. Revenue in fiscal 2019 was GBP63.91 billion. Sales excluding VAT and fuel came in at GBP57.37 billion, higher than the GBP56.90 billion cashed in a year earlier.

PRETAX PROFIT: Tesco posted a pretax profit of GBP1.32 billion, against a FactSet consensus of GBP1.94 billion. The grocer had made GBP1.67 billion the previous year.

WHAT WE WATCHED:

-CORONAVIRUS MEASURES: Like most U.K. grocers, Tesco had been taking a number of measures to adjust business to a pandemic-conditioned trading environment. The company has continued to focus on ESG aspects such as supporting communities and employees.

-DIVIDEND: Between conserving cash amid uncertain times and returning value to shareholders, Tesco opted to declare a final dividend of 6.50 pence and confirming its plan to use part of the proceedings of the Asian business disposal pay a special dividend.

Write to Matteo Castia at [e-mail]

(END) Dow Jones Newswires

April 08, 2020 10:16 ET (14:16 GMT)

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