Executive Summary

• Tesco announced a net profit of £1,208 million for FY18, representing a significant rebound from last year’s loss of £54.0 million. Revenues increased by 2.8% to £57,491 million.
• Statutory operating margin expanded by 140 basis points to 3.2%. The company said that it is on track to reach its previously announced target of an operating margin of 3.5%–4.0% by FY20.
• UK comparable sales were up by 2.2% during the year. Tesco said that there was consistent strength in fresh food, while there was a 0.4% drag from general merchandise.
• Diluted EPS was 14.7 pence compared to a loss per share of 0.5 pence last year.