Tesco 1Q Sales Boosted By Booker Acquisition -- Update
June 15 2018 - 5:49AM
Dow Jones News
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 maryam.cockar@dowjones.com
(END) Dow Jones Newswires
June 15, 2018 05:34 ET (09:34 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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