Tesco PLC Trading Update (0349C)
June 13 2019 - 2:01AM
UK Regulatory
TIDMTSCO
RNS Number : 0349C
Tesco PLC
13 June 2019
OUTPERFORMANCE IN A subdued UK MARKET
Total sales Like-for-like
All sales on exc. VAT, change sales change
exc. fuel basis Sales GBPm (constant rates)
UK & ROI 11,168 1.3% 0.8%
----------- ------------------ --------------
UK 9,088 (0.4)% 0.4%
ROI 567 2.7% 1.3%
Booker 1,513 12.4%(*) 3.1%
----------- ------------------ --------------
Central Europe 1,296 (7.9)% (4.9)%
----------- ------------------ --------------
Asia 1,244 2.6% 0.1%
----------- ------------------ --------------
Tesco Bank 270 (1.9)% n/a
----------- ------------------ --------------
Group 13,978 0.4% 0.2%
----------- ------------------ --------------
At actual rates, the Group sales change is 0.4%, UK&ROI
sales change is 1.2%, Central Europe sales change is (10.8)% and
Asia sales change is 7.3%.
*Booker consolidated from 5 March 2018, therefore includes 9
additional days vs. 1Q 2018/19. Booker sales change on a comparable
days basis is 3.1%.
Dave Lewis, Chief Executive:
"We have had a strong start to the year, growing ahead of the UK
market on both a volume and value basis. Our customer offer is more
competitive than ever, with a wider choice of our 'Exclusively at
Tesco' products now available in more stores, helping to drive more
than 10% sales growth across the range.
Following a particularly good Easter, our '100 Years of Great
Value' event in May proved very popular with more than 1.5 million
customers benefiting from discounted Clubcard Prices."
Trading update (13 weeks ended 25 May 2019)
In the UK, whilst overall grocery market growth was subdued, we
outperformed in both sales and volume terms (by +0.2% and +1.3%
respectively(1) ) as we made further investments in range, price
and loyalty as part of our '100 Years of Great Value' celebrations
for customers. Our fresh food volume outperformance was
particularly strong in prepared foods (+2.4%)(1) and bakery and
dairy (+1.6%)(1) . We delivered a strong Easter performance across
all formats, including our biggest-ever sales day for small stores
on Easter Sunday.
UK online grocery sales were up 7.0% year-on-year, with the
proportion of customers choosing to Click & Collect their
orders increasing to over 10%. The closure of Tesco Direct in July
last year impacted total UK sales growth by (0.8)%. ROI sales
growth improved to 2.7% at constant rates, following our successful
'You Won't Pay More' campaign in addition to targeted coupon
activity.
Booker continues to grow well despite lapping exceptionally
strong growth last year driven by one-off contract wins. Booker's
customers are responding positively to the benefits of 'Joining
Forces' including our improved offer in fresh food and the launch
of over 100 new and exclusive fresh-cut flowers and drinks
products, helping to drive total sales growth (on a comparable days
basis) of 4.2% excluding tobacco.
In Central Europe, customer ratings of price satisfaction
improved, driven by our 'Star lines' initiative. Sales of the 600
key products included in the initiative outperformed the rest of
the business, by c.5%. Declining sales in Poland, including the
impact of store closures and two fewer trading days, impacted
Central European sales by c.(4)%. Significantly cooler weather
across the region further impacted sales by up to c.(2)%.
In Asia, sales increased by 7.3% at actual rates. At constant
rates our sales performance improved by more than 3%
quarter-on-quarter to 2.6%, with a stronger customer offer
contributing to a better performance across all formats and
categories. We saw an increase in market share in Thailand driven
by strong growth in the Bangkok area.
Contacts
Investor Relations: Chris Griffith 01707 912 900
Media: Christine Heffernan 01707 918 701
Philip Gawith, Teneo 0207 420 3143
A call for investors and analysts will be held today at
8.00am.
Dial in number: 0800 358 9473 (toll free) / +44 (0) 333 300
0804
Access Code: 94332100#
A recording will be available on +44 (0) 333 300 0819 and access
code 301287528# until 12 July 2019.
We will be hosting a Capital Markets Day on 18 June to share
some of the 'untapped value opportunities' available for Tesco, and
we will also be holding an ESG-focused event on 26 June 2019.
Notes
1. Sales value and volume outperformance data is for 13-weeks
ending 25 May 2019 and is sourced from IRI Retail Advantage(TM) ,
global insight providers to the retail industry. IRI market
definition excludes Aldi and Lidl.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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