Tesco logs £40m annual net loss on accounting scandal: HumSub.TV
Tesco logs £40m annual net loss on accounting scandal: HumSub.TV: Tesco did see annual sales grow by 3.7 percent in the 2016/2017 financial year – the first time in seven years
Supermarket giant Tesco revealed Wednesday that it fell into an annual net loss of £40 million due to a costly accounting scandal at Britain’s biggest retailer.
The after-tax loss, equivalent to $50 million or 47 million euros, was skewed by a £235-million hit in costs arising from the three-year-old scandal.
The company’s performance contrasted with a net profit of £138 million in the previous financial year, Tesco added in a statement.
However, operating or underlying profits before one-off items rallied almost a third to £1.28 billion in its 2016/2017 financial year, which ran until the end of February. That beat market expectations.
And annual sales grew for the first time in seven years by 3.7 percent to £55.9 billion, despite fierce domestic competition.
The news comes two weeks after Tesco agreed to a fine and compensation costs in Serious Fraud Office deal, under which the firm will not face prosecution.
Charges have previously been brought against three former Tesco executives, who will face trial over alleged fraud and false accounting.
Tesco also said Wednesday that it expected its vast £3.7-billion takeover of British wholesaling giant Booker to be submitted for shareholder approval by either late 2017 or early 2018.
“We are confident that we can build on this strong performance in the year ahead,” said chief executive Dave Lewis in the statement.
“On top of this, our proposed merger with Booker will bring together two complementary businesses, driving additional value for shareholders by realising substantial synergies and enabling us to access the faster growing ‘out of home’ food market.”
Shares fell 3.14 percent to 189.45 pence in mid-morning deals, topping the fallers’ board on the FTSE 100 index, which was 0.25 percent lower.
“Tesco’s historic troubles have left a lingering mark on its current results,” noted David Alexander, retail analyst at GlobalData.
“Past indiscretions aside, there is plenty for executives to crow about in today’s numbers.”
Tesco is the world’s third-biggest supermarket chain after France’s Carrefour and global leader Wal-Mart.
The group had slumped into an enormous record loss of £5.7 billion in 2014/2015 after a vast property writedown and challenging home trade. However, it rebounded into slender profit last year.
Tesco had been accused of overstating profits by £326 million between February and September 2014 in an accounting error.
Following the incident, the company appointed outsider and former Unilever executive Lewis in July 2014 to replace long-standing chief executive Philip Clarke and oversee a drastic restructuring of the group.
In recent years, Tesco has suffered in the face of fierce competition in its domestic market from German-owned discount retailers Aldi and Lidl as consumers tighten their belts.
It has also been battered by supermarket price wars with British rivals Sainsbury’s, Morrison and Wal-Mart unit Asda.
Naeem Aslam, analyst at trading firm Think Markets, said rising British consumer prices were a “problem” for Tesco.
“Inflation is still the major problem for the company,” Aslam explained.
“The firm cannot increase prices too much because that will drive their customers back to Aldi and Lidl.”
Tesco logs £40m annual net loss on accounting scandal: HumSub.TV
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Introduction
HumSub TV is Pakistan’s leading forwarding-thinking, edutainment channel, aimed at promoting and upholding peace, interfaith harmony and social responsibility within Pakistan through informative and insightful programmes and documentaries; analytical interviews on issues pertaining to social, economic, legal and environmental set-up; dedicated shows to canvass and thereby promote the culture and heritage of Pakistan and in-depth coverage of national and international news.
HumSub TV is the first channel and thus a pioneer within its own right that mainly focuses on emphasising the “Rights” as well as the “Obligations” of the citizens in light of the Constitution of Pakistan, numerous International declarations signed by the Government and various laws that have been promulgated over the years but are not in the knowledge of the common citizen.
HumSub TV also aims to enter into bilateral agreements with other countries to promote not only their culture, heritage and tourism, but also their educational and medical facilities.
Following the successful launch of HumSub TV’s head office in Blue Area, Islamabad; the bureau office has been set up in Lahore.
Vision
To project positive image building of Pakistan and inculcate nationalism, as per the vision of the founder of the nation, Quaid-e-Azam Mohammad Ali Jinnah.
Mission
HumSub TV is resolute about the promotion of a pluralistic, inclusive and egalitarian society in Pakistan where all citizens are allowed to contribute to promote interfaith harmony, peace and collective wisdom in the social, political and economic development of Pakistan and to encourage critical and lateral thinking in the society. HumSub TV strives to make a positive contribution to this end.
HumSub TV’s Theme
HumSub TV, Pakistan’s first EDUTAINMENT Channel, has been set up for not only those audience residing in Pakistan or overseas but the international community on the whole. The vision of the channel is to project positive image building of Pakistan and inculcate nationalism as per the vision of the founder of the nation.
HumSub TV strives to make a positive contribution to this end by promoting pluralism, inclusiveness and egality in Pakistan and give voice to the suppressed. It endeavors to act as a positive catalyst for social change and Pakistani nationalism. It envisions providing a platform for airing critical and lateral thinking and collective wisdom by inviting positive minded intellectuals and opinion forming individuals for the promotion of interfaith harmony and peace in the social, political and economic development of Pakistan.
Whereas the channel airs upbeat edutainment programmes, it, nonetheless, has the primary objective of countering negative anti-Pakistan regional and international propaganda as well as advancing fundamental rights as encapsulated in the Constitution of Pakistan.
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