REG - Tesco PLC - Tesco PLC Q1 22/23 Trading Statement

TescoAnnouncement

17/06/2022 07:00

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RNS Number : 2180P  Tesco PLC  17 June 2022

Q1 Trading Statement 22/23

CONTINuing TO champion GREAT value for customers.

 

Our sales performance (exc. VAT, exc. fuel) for the 13 weeks ended 28 May 2022
is detailed below.  The three-year like-for-like (LFL) sales growth
represents a comparison versus pre-pandemic performance in FY19/20.

 

                        Sales £m   One-year LFL  Three-year LFL(1)

     UK & ROI           12,596     1.5%          9.7%
        UK              9,879      (1.5)%        8.1%
        ROI             612        (2.4)%        10.1%
        Booker          2,105      19.4%         19.6%(2)
     Central Europe     976        9.0%          11.3%
     Group Retail       13,572     2.0%          9.9%

 

UK:              Ongoing support for customers in challenging
times; further improvement in market share

 •    Market share growth of +37bps(3), outperforming on both value and volume
 •    Overall distribution of Aldi Price Match and Low Everyday Prices products up
      c.19% YoY
 •    Maintaining largest improvement in quality & value perception of any food
      retailer in the market vs pre-pandemic
 •    YoY performance impacted by annualisation of lockdown last year, most notably
      in GM, clothing and online, partially offset by inflation

ROI:            Sales ahead of pre-pandemic levels, one-year
performance reflects trading over lockdown last year

 •    Market share growth +11bps YoY(4); Brand NPS increased by +4 points YoY to 18
 •    Sales decline due to lapping highest level of restrictions, which is partially
      offset by inflation

Booker:      Strong performance, particularly in Catering, reflects
benefit of lapping lockdown and underlying business growth

 •    Catering LFL sales increased by +57.4%; added over 13,000 net new customers
 •    Retail LFL sales increased by +2.3%

CE:              Growth driven by inflation across all three
markets, despite impact of lapping lockdown

 •    Continued market share growth in all three countries, +40bps overall(5)
 •    Completed sale of 17 malls & one retail park, generating proceeds of
      c.£200m as announced in April

Bank:          Sales up +38.8% largely from acquisition of Tesco
Underwriting; recovery in card sales & travel money

Outlook:     At this early stage in the year, our guidance ranges for
profit and cash remain unchanged

Ken Murphy, Chief Executive:

"Whilst the market environment remains incredibly challenging, our laser focus
on value, as well as the daily dedication and hard work of our colleagues, has
helped us to outperform the market.  Our material and ongoing investment in
the powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard
Prices is removing the need for customers to shop elsewhere.

Although difficult to separate from the significant impact of lapping last
year's lockdowns, we are seeing some early indications of changing customer
behaviour as a result of the inflationary environment.  Customers are facing
unprecedented increases in the cost of living and it is therefore even more
important that we work with our supplier partners to mitigate as much
inflation as possible."

Contacts.

 Investor Relations:  Chris Griffith       01707 940 900
 Media:               Simon Rew            0330 6780 639
                      Nick Claydon, Teneo  07974 982 547

 

A call for investors and analysts will be held today at 09:00am. A link will
be available on our website at www.tescoplc.com/investors
(http://www.tescoplc.com/investors) .  A transcript and playback facility
will also be made available after the call.

 

We will report our Interim results on Wednesday 5 October 2022.

 

Channel sales breakdown.

 

                  One-year LFL  Three-year LFL
 Large            (0.7)%        3.9%
 Convenience      6.2%          2.1%
 Online           (14.5)%       55.0%
 Total UK         (1.5)%        8.1%

 

Additional Q1 sales detail.

 

 (exc. VAT, exc. fuel)  Sales £m   Total sales change  Total sales change

                                   (constant rates)    (actual rates)
 UK & ROI               12,596     1.5%                1.4%
 UK                     9,879      (1.4)%              (1.4)%
 ROI                    612        (2.1)%              (4.5)%
 Booker                 2,105      19.3%               19.3%
 Central Europe         976        7.7%                4.8%
 Group Retail           13,572     2.0%                1.6%
 Tesco Bank             261        38.8%               38.8%
 Group                  13,833     2.5%                2.2%

 

Fuel.

 

               Sales £m   One-year LFL  Three-year LFL
 UK exc. fuel  9,879      (1.5)%        8.1%
 Fuel          2,035      44.0%         22.4%
 UK inc. fuel  11,915     4.2%          10.4%

 

Notes.

1.     Three-year LFL is calculated by comparing current year sales to
sales in 2019/20, including sales from those stores which were trading in both
years

2.     Best Food Logistics was acquired by Booker in early March 2020 and
is therefore included within LFL sales performance on a one-year basis but not
included on a three-year basis

3.     Kantar Total Tesco year-on-year market share gains of Grocers Total
Till Roll on 12 week rolling basis to 15 May 2022

4.     Kantar Total Tesco year-on-year market share gains of Total Till
Roll on 12 week rolling basis to 15 May 2022

5.     GFK market share data on a 12 week rolling basis to 30 April 2022

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