If only...
Tesco (LSE: TSCO), the UK's biggest retailer, has seen its market value rise almost 50% in a year. In April, barely three years after it reported the second largest loss in UK corporate history, it posted pre-tax profits of nearly £1.3bn in the year to the end of February, up from £145m the year before. This came from sales that rose 2.8% to £57.5bn. It also cut net debt by nearly 30% to £2.6bn. The results prompted it to announce a 3p dividend, the first payout in three years. In July, Tesco and its French counterpart Carrefour joined forces to fend off competition from discounters.
Be glad you didn't...
Associated British Foods (LSE: ABF) is a clothing as well as a food retailer, as it owns Primark. Last November it reported a 50% rise in pre-tax profits to £1.6bn, which was due to brisk business at Primark, a rebound in sugar profits and a boost from sterling's weakness. Yet the shares fell after the firm said it would be reducing the size of US Primark stores. This month ABF said profits would be higher than expected as the heatwave has boosted sales at Primark. But ABF also warned of lower annual profits at its sugar business as European sugar prices are currently low.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
BP shares gain despite worst results since pandemic on activist investor hopesBP’s shares are on the up despite poor Q4 results, as shareholders look to activist investor Elliott Investment Management to change the oil major’s course
-
Landlords ordered to make rental properties more energy efficient by 2030The government has said rental properties must have a minimum EPC rating of C by 2030. We explain how much it will cost landlords to upgrade their buy-to-let portfolio
-
How to profit from rising food prices: which stocks should you invest in?Tips Food prices are rising – we look at the stocks to avoid and the one to invest in this sector.
-
It might confuse the market, but Associated British Foods is a buyTips Associated British Foods is a unique firm: half food producer, half fashion retailer. That confuses the market, says Rupert Hargreaves, but its diverse nature can give the company strength.
-
Tesco looks well-placed to ride out the cost of living crisis – investors take noteAnalysis Surging inflation is bad news for retailers. But supermarket giant Tesco looks better placed to cope than most, says Rupert Hargreaves.
-
Tesco sells its retail subsidiary in Thailand and Malaysia for £8bnNews Tesco has agreed to sell its southeast Asian operations to Thai conglomerate Charoen Pokphand for £8.2bn in cash.
-
Tesco should keep its Asian assetsOpinion The £7bn that Tesco could get for its Tesco Lotus business in Asia looks enticing. But holding on to it would be smarter, says Matthew Lynn.
-
Tesco cashes out of the mortgage businessFeatures Tesco Bank has left the mortgage market by selling its £3.7bn loan book. Its 23,000 customers will be moved to the Halifax, a subsidiary of Lloyds.
-
Share tips of the weekFeatures MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
-
Tesco wields the axeFeatures Britain’s biggest supermarket is cutting back on staff and fresh food. Will the move prove counterproductive? Matthew Partridge reports.
