Tesco Reports Weaker Sales And Profits For FY 2014

Tesco reported group sales with VAT rose 0.3 percent to £70.9 billion for the fiscal year ending February 22, 2014, compared with the previous year. Group trading profit declined 6.0 percent to £3.315 billion, due to weaker UK grocery market in the second half of the year and challenges encountered by the company in overseas markets. Trading margin fell 5.17 percent, 34 basis points lower. Underlying profit before tax also fell 6.9 percent to £3.054 billion, while group profit before tax was £2.259 billion, after one-time charges of £801 million, the company said. Despite these charges, group profit before taxes rose 9.8 percent. Also, the company said net finance costs rose slightly to £315 million from £309 million in the previous year. Capitalized interest dropped by £44 million to £79 million.