Tesco First Half: The Reset Starts to Bear Fruit

Executive Summary

• In the first half of fiscal year 2016, Tesco’s group sales (excluding fuel) were down 1.9% in British pounds, or down 0.3% at constant exchange rates.
• UK comps were down 1.1%, but maintained the improving trend seen in the second half.
• International comps were positive, at 1.0%, on a continuing operations basis.
• Group operating profit pre-exceptionals was down 54.6% year over year, to £354 million.
• This yielded a first-half operating margin of 1.5%, an improvement on the fiscal year 2015 margin of (0.5)%.