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Company Growth

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Company Growth
How has Tesco profit grown over the last 6 years?

Since 1992, Tesco has undergone considerable growth and has seen its market share in the UK rise from 10.4% to 15.2%. This in turn has led to increases in both turnover and profit. The changes in the company's financial fortunes are shown below:

Year
Turnover (£m) Group operating profit (£m) Market share
1992-3 7,581 496 10.4%
1993-4 8,600 521 10.7%
1994-5 10,101 617 12.0%
1995-6 12,094 724 13.7%
1996-7 13,887 774 14.5%
1997-8 17,400 817 15.2%
% change 1992-3 to 1997-8 +130% +70% +50%
Group turnover and operating profit 1992-98

The improvement in group turnover and operating profit is also reflected in the rise in the Tesco share earnings and dividend, as shown below:

Year
Earnings per share (p)* Dividends per share (p)**
1992-3 18.3 7.10
1993-4 18.8 7.75
1994-5 20.1 8.60
1995-6 21.9 9.60
1996-7 23.5 10.35
1997-8 26.6 11.60
% change 1992-3 to 1997-8 +45.3% 63.4%
Share earnings and dividends 1992-98
*
Earnings per share is the profits divided by the number of shares
** Dividends per share is the profit distributed to shareholders divided by the number of shares
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© 1996-2000 Biz/ed
What are Tesco Key Financial Ratios?
The following figures refer to the 1997-98 financial year.
Operating Margin
Operating margin in UK - 5.9%
Operating margin in Northern Ireland and Republic of Ireland - 4.8%
Total Group margin - 5.5%
Productivity
Turnover per employee - £146,404
Profit per employee - £8,660
Weekly sales per sq foot - £21.12
(based on retail area of stores, excluding lobby, restaurant and non-sales areas)
Share capital returns
Return on shareholder's funds - 21.4%
Return on capital employed -

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