Customer satisfaction
• Shopping trip satisfaction improved across all measures and all channels; +8 point increase year-on-year9
• Strong fresh food offer driving +0.4% UK volume outperformance in the half
• ‘Exclusively at Tesco’ brands gaining volume share from all competitors; full range now in 550 stores
• Brand perception further improved on value, quality and trust10
• Brand net promoter score improved in the half, versus declines for all key competitors
Cash profitability
• Group operating profit before exceptional items and amortisation of acquired intangibles4 £1,406m, +25.4%, margin 4.41%, up 87 bps;
- Significant improvement driven by space right-sizing, cost savings and improved product mix
- UK & ROI £1,085m +28.4%
- Central Europe £63m (16.0)% (+1.3% excl. £(13)m provision re. potential historic VAT liabilities)
- Asia £171m +54.1%
- Bank £87m, (3.3)%: invested in competitiveness of insurance offer
• Group margin target (pre-IFRS 16 excl. Booker) delivered six months early: 12-month margin 3.73% incl. 1H 3.67%11
• Cost savings to date £1.6bn, already ahead of £1.5bn FY 19/20 target12
• EBITDA13 up 15.3% to £2.3bn
Cash flow
• Retail free cash flow6 of £814m, +£417m YoY
• Working capital inflow +£114m (LY: £(12)m) driven by UK & ROI +£216m (LY: £(52)m)
• Agreed 73 property disposals since year-end, primarily in Poland for total proceeds of £210m (of which 1H: £65m)
• Interim dividend 2.65p, +58.7%; expect full year dividend pay-out ratio of 50%
• Net debt6 £(12.6)bn, down £0.6bn since year-end; Pension deficit £0.2bn lower following strong asset performance
CEO succession
• Group CEO succession announced: Dave Lewis stepping down next year; Ken Murphy appointed as successor
And later;
The interim dividend was approved by the Board of Directors on 1 October 2019. The interim dividend has not been included as a liability as at 24 August 2019, in accordance with IAS 10 ‘Events After the Reporting Period’. It will be paid on 22 November 2019 to shareholders who are on the Register of members at close of business on 11 October 2019.
https://www.tescoplc.com/media/755208/t ... s-1920.pdf
