Tesco surges to £1bn first-half profit as ‘robust’ turnaround under boss Dave Lewis pays off
Tesco has surged past the £1billion profit mark in the first half of its financial year, the latest sign that the rewiring of the business under chief executive Dave Lewis is paying off.
The figures, forecast by analysts and expected to be announced next month, would mark the healthiest profit outcome under Lewis.
Broker Shore Capital said management presentations to the City in June showed a ‘robust recovery from its deep nadir’ in 2014 when a black hole was discovered in its accounts.
Trading trends: Profit at Tesco is expected to rise as much as 30 per cent by some analysts’ measures
Shore analyst Clive Black said Tesco is ‘now more in control of its own destiny’.
Another broker, Bernstein, said Tesco continues to benefit from its Booker merger and there is evidence that older Aldi and Lidl stores are no longer stealing market share, but still pose a threat.
Profit at Tesco is expected to rise as much as 30 per cent by some analysts’ measures, leaving earnings at £1.1billion despite a difficult summer for many supermarkets.
Bernstein analyst Bruno Monteyne said Morrisons is now the one to watch, adding that its ‘underperformance’ relative to its biggest rivals – Tesco, Asda and Sainsbury’s – has ‘become increasingly noticeable this year’.