By Matteo Castia

 

Tesco PLC reported Wednesday a fall in pretax profit for fiscal 2021 as the coronavirus pandemic boosted costs, and said it expects improved profitability in fiscal 2022 on lower spending.

The British grocer made a pretax profit of 825 million pounds ($1.13 billion) for the year ended Feb. 27, compared with GBP1.32 billion in fiscal 2020.

Revenue from continuing operations fell to GBP57.9 billion from GBP58.09 billion a year earlier. Meanwhile, administrative expenses and exceptional costs increased.

The board declared a final dividend of 5.95 pence, taking the full-year payout to 9.15 pence, flat on the year.

The company said it expects lower sales but improved profitability in fiscal 2022 as the pandemic winds down and the associated restrictions ease.

"Whilst we expect some of the additional sales volumes we have gained this year in our core U.K. market to fall away as Covid-19 restrictions ease, we expect a strong recovery in profitability and retail free cash flow as the majority of the additional costs incurred as a result of the pandemic in fiscal 2021 will not be repeated," the company said.

Tesco also said it has appointed Thierry Garnier as a nonexecutive director with effect from April 30. Mr. Garnier currently serves as CEO at home-improvement retailer Kingfisher PLC. The grocer appointed Bertrand Bodson as a nonexecutive director too, with effect from June 1.

 

Write to Matteo Castia at matteo.castia@dowjones.com

 

(END) Dow Jones Newswires

April 14, 2021 02:37 ET (06:37 GMT)

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