Tesco CFO to Step Down in April 2021
June 02 2020 - 8:19PM
Dow Jones News
By Nina Trentmann
Tesco PLC is looking for a new finance chief, a move that comes
as the largest U.K. food retailer prepares for a change at the helm
later this year.
On Tuesday, the company said longtime Chief Financial Officer
Alan Stewart plans to retire on April 30, 2021. His departure would
come around six months after a new chief executive, Ken Murphy,
takes the reins of the company in October.
Tesco said it would look for a successor to Mr. Stewart both
inside and outside the company. The long lead time for the search,
a spokeswoman said, is unrelated to the coronavirus upheaval, which
has delayed CFO searches at other companies.
Mr. Stewart became CFO in September 2014, and is credited, along
with outgoing CEO Dave Lewis, with helping Tesco resolve an
accounting scandal that erupted that year. Mr. Stewart also went on
to improve the grocer's financial profile as it faced a shifting
retail landscape, and more recently, Britain's exit from the
European Union in January.
"He has led the corporate restructuring, rebuilt the balance
sheet, guided Tesco back to investment grade and played a huge role
in the financial transformation of the business in the last six
years," Tesco said in a statement on Mr. Stewart's planned
departure.
One of his assignments was addressing the accounting scandal,
which led to a criminal investigation by U.K. authorities. In
September 2014, Tesco flagged issues in its accounting practices
that resulted in an overstatement of profit forecasts by about
GBP263 million ($330 million). Those practices involved the early
booking of commercial income -- or promotional money, discounts and
rebates from suppliers -- and delayed booking of costs, according
to the company.
Tesco ultimately paid out over GBP200 million to settle the
matter.
Mr. Stewart was instrumental repairing some of the damage caused
by the accounting scandal, said Russ Mould, investment director at
financial services company AJ Bell Ltd.
Tesco's net debt has fallen in recent years, dividends were
resumed and planned divestitures, including of its businesses in
Thailand and Malaysia, received shareholder approval.
Mr. Lewis, the outgoing chief executive of Tesco, joined the
company in September 2014, like Mr. Stewart. Mr. Murphy, his
replacement, was most recently chief commercial officer and
president of global brands at Walgreens Boots Alliance Inc.
A new CFO will have to address the longer-term effects of
coronavirus on the economy and consumer spending habits, Mr. Mould
said. In recent weeks, Tesco has reported rising sales, though its
U.K. market share has dropped.
Mr. Stewart "will leave the business at an interesting juncture
with the company facing lots of challenges and opportunities
created by the coronavirus crisis," Mr. Mould said.
Anthony Orunagoriainoff contributed to this article.
Write to Nina Trentmann at Nina.Trentmann@wsj.com
(END) Dow Jones Newswires
June 02, 2020 20:04 ET (00:04 GMT)
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