Tesco profits

[Gofer Blue]

https://www.bbc.co.uk/news/business-68776913

The UK's biggest supermarket chain said pre-tax profits hit £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February.

So, sales up by just over 4% whilst profits up nearly three-fold. Is it just me or do I detect rip-off Britain at work here, under the cover of "inflation"?

[Eric Cartman]

Re: Tesco profits

https://www.bbc.co.uk/news/business-68776913

The UK's biggest supermarket chain said pre-tax profits hit £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February.

So, sales up by just over 4% whilst profits up nearly three-fold. Is it just me or do I detect rip-off Britain at work here, under the cover of "inflation"?

They also just made 100s of staff redundant but I am guessing nobody in the boardroom went.

[jon1959]

Re: Tesco profits

https://www.bbc.co.uk/news/business-68776913

The UK's biggest supermarket chain said pre-tax profits hit £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February.

So, sales up by just over 4% whilst profits up nearly three-fold. Is it just me or do I detect rip-off Britain at work here, under the cover of "inflation"?

Not just you.

[JamesWales]

Re: Tesco profits

https://www.bbc.co.uk/news/business-68776913

The UK's biggest supermarket chain said pre-tax profits hit £2.3bn, up from £882m, while sales rose by 4.4% to £68.2bn in the year to 24 February.

So, sales up by just over 4% whilst profits up nearly three-fold. Is it just me or do I detect rip-off Britain at work here, under the cover of "inflation"?

No question about it. When inflation is in the news, it's a green light for every company to increase their prices, even if they don't need to. Customer expectations were to pay more and so many did, even begrudgingly.

[Wales-Bales]

Re: Tesco profits

Stop agreeing with each other, this is a message board not a party political broadcast!

[jon1959]

Re: Tesco profits

Stop agreeing with each other, this is a message board not a party political broadcast!

grasshopper 2.jpg

[blue sky]

Re: Tesco profits

I’m not a fan of Tesco. I don’t like their stores, their meal deals or their clubcards. Shirley Porter’s big council house sell-off for votes still rankles.

However they are making about 3p profit on every £1 of sales. That is not a rip-off or profiteering. Prior to the pandemic most supermarket chains made 2-4% profits on revenue before tax and that had been the case for decades.

Selling food is similar to selling fuel for vehicles. It’s an absolute necessity and if your prices are a bit too high then the consumer will shop elsewhere. That’s why margins are so low compared to, say, tech. Apple, for example, makes annual profits of around $170 billion on sales of $380 billion.

[JamesWales]

Re: Tesco profits

I’m not a fan of Tesco. I don’t like their stores, their meal deals or their clubcards. Shirley Porter’s big council house sell-off for votes still rankles.

However they are making about 3p profit on every £1 of sales. That is not a rip-off or profiteering. Prior to the pandemic most supermarket chains made 2-4% profits on revenue before tax and that had been the case for decades.

Selling food is similar to selling fuel for vehicles. It’s an absolute necessity and if your prices are a bit too high then the consumer will shop elsewhere. That’s why margins are so low compared to, say, tech. Apple, for example, makes annual profits of around $170 billion on sales of $380 billion.

Hard to argue with that really.

[jon1959]

Re: Tesco profits

Hard to argue with that really.

Try.

[JamesWales]

Re: Tesco profits

Try.

I'll leave it to you on this occasion. Something about the glorious nationalisation of supermarkets and agriculture providing the solution?

[jon1959]

Re: Tesco profits

I'll leave it to you on this occasion. Something about the glorious nationalisation of supermarkets and agriculture providing the solution?

Probably. :hehe:

[JamesWales]

Re: Tesco profits

Probably. :hehe:

👍

[Gofer Blue]

Re: Tesco profits

I’m not a fan of Tesco. I don’t like their stores, their meal deals or their clubcards. Shirley Porter’s big council house sell-off for votes still rankles.

However they are making about 3p profit on every £1 of sales. That is not a rip-off or profiteering. Prior to the pandemic most supermarket chains made 2-4% profits on revenue before tax and that had been the case for decades.

Selling food is similar to selling fuel for vehicles. It’s an absolute necessity and if your prices are a bit too high then the consumer will shop elsewhere. That’s why margins are so low compared to, say, tech. Apple, for example, makes annual profits of around $170 billion on sales of $380 billion.

Please explain how an increase in sales of 4.4% can lead to pre-tax profits increasing from £882 million to £68 billion?

[Keyser Soze]

Re: Tesco profits

.

[Keyser Soze]

Re: Tesco profits

“Explain it to me?”

Read the annual accounts on www.investegate.co.uk, using the TSCO EPIC code. All publicly available and free. It will explain it to you.

Accounting isn’t difficult: a few rules, three structures to understand (P and L, Cashflow statement and a balance sheet.), and some average arithmetic to interpret it.

Read the accounts backwards though. That is, read the footnotes first for dirty tricks, or clever accountants rule-bending and chicanery, and the first two of three items above should tell you what you need to know. You’ll be bored as an accounting graduate staring out of the window “doing audit” for their first two years but you’ll get it I’m sure.

Accounting isn’t hard. Or you wouldn’t see so
many average IQ dolly birds taking the courses at Uni as you do these days. The clever ones go to the big 4. The really smart ones will work in offshore tax advisory and wealth management. But most of the cattle will be lucky enough to earn a teachers salary before being AI’d out of existence or impregnated by a senior accountant / boss. A high life it is not.