Tesco PLC (OTCMKTS:TSCDF) posted strong first half progress with an update on its plans to create long-term value. The company is positive on volume growth and like-for-like sales in all areas across the Group. Like-for-like sales growth in the U.K. was 0.6% while for the Group it came at 1.0%. U.K volumes were up 2.1% while transactions jumped 1.6%.
The highlights
International volumes surged 3.3% in 1H2016 while international transactions gained 0.3%. Tesco noted considerable progress against all 3 priorities; competitive in the U.K. with all major customer metrics enhancing relative to the market, more secure balance sheet with net debt declined by almost £0.8 billion since year-end and rebuilding trust as brand health returned to best level in over 4 years.
Customer, supplier and colleague associate measures all are improving for the company. Tesco reported that 78% of colleagues suggested company as a great place to work up from 70% in 1H2014 and 1H2015. There was extremely strong improvement as the U.K. supplier satisfaction came at 78% up from 51% in 1H2014 and 1H2015.
Dave Lewis, the CEO of Tesco, said that they have recorded strong advancement in 1H2016, with encouraging like-for-like sales growth in all parts of the Group as they re-invest in their client offer while rebuilding profitability in a maintainable way. The entire team is concentrated on serving shoppers better every day.
They are more competitive in their offers. Prices are over 6% lower than what they were two years earlier, service and availability have never been better and the range is more convincing. The fresh food brands are doing ahead of expectations, enhancing value proposition and further eliminating reasons for clients to shop elsewhere.
Though the market is uncertain, the company has achieved considerable progress against the priorities that it had set a couple of years ago, stabilizing the operations and positioning them well for the future. The company is sharing the plans they have in place to turn even more competitive for their clients, even simpler for coworkers and an even better associate for their suppliers, while developing long-term, sustainable value for shareholders.
