Tesco | Full Year Results 2016/2017

This morning we've announced the results
for the business in 2016/17 and I'm
delighted to say that the results are
ahead of the plan that we set for
ourselves just a year ago. It's been a
fantastic performance. From a customer
point of view, our range is simpler, our
prices are lower, and our service and
availability has never, never been better.
It's a fantastic achievement by Tesco
colleagues around the world and I'm
pleased to say that that performance has
driven a sharp improvement in sales, in
volume, in cash and in profit, so it's a
result that we can all be proud of, and
it's been driven by 500,000 Tesco
colleagues around the world. And what it
is I'd like to do today is share with
you a little bit about what those
results mean, but also carry on the
tradition of asking some of my
colleagues from the Exec to help me with
those results. Before I do that I'd say
that the profit that we're going to
announce today is £1.28 billion,
which is 30% growth
year-on-year and as you'll see it means
that the performance of the business as
represented by the Big Six is 'green' for
the Group and 'green' for the UK and
Ireland. So it's a fantastic performance.
Fresh food is the most important
category for customers, it drives their
choice of where it is they want to shop.
So you'll remember in Christmas we
talked about the operational performance.
What I'd like to do now is introduce to
you Alessandra Bellini who is our Chief
Customer Officer, just joined us, and
Jason Tarry who's been here just a
little while longer as our Chief Product
Officer. So Jason why don't I start with
you, you know I talk about the food
performance of the business, tell me what
it is that's driving such as strong food
performance? Thanks Dave. Yeah, our food
performance has been very strong but
it's been led by our Fresh food
performance and I'm pleased to say it's
been good across the Group. So here in
the UK we've seen market out-performance
all year driven through our 'first
for fresh' program and particularly
pleasing has been the launch of our farm
brands just about a year ago, and now
two-thirds of all customer baskets
contain one of our farm brands. In
Ireland we've seen a strong volume
performance
despite a deflationary market across Bakery, Meat and Produce, and finally in
Thailand we've also seen market
out-performance, so a good performance
across the Group. And it's a, it's a place
in our business where we come into a lot
of contact with suppliers, we really do
get to the heart of, you know, agriculture.
Tell us a little bit about how it is
you've been working with suppliers and
the feedback you're getting to what is a
crucial partnership in our business? Yeah,
you're right, our partnership with our
suppliers is absolutely critical to our
progress to date and our progress going
forward. They are key stakeholders
in our business and again I'm very proud
of the work that the Product teams have
undertaken across the Group, whether it
be, you know, more productive longer term
partnerships or simplification of the
buying model, or publication of payment
terms and our performance against those.
And we're seeing that reflected in the
feedback from suppliers, and it's
particularly pleasing to see the scores
of prompt payment. 84% of
our suppliers are pleased with the fact
that we pay them promptly and on time.
It's a fantastic performance from you
and all the team but also with the
supply chain working with suppliers
never been better and as you say a
critical partnership. But then it comes a
little bit to the brand Ale, and you
know, putting you on the spot a little
bit, it's important that all of that good
work is perceived well by our customers
when they shop with us at Tesco and
you've been doing some work on how our
quality is perceived, so what can you
share with us there? Well let me start
first of all by saying 'hi' to everyone
and thank you for the very warm welcome
I received. Thank you to all the people
I've met so far and the ones I will meet,
because it's been wonderful to get to
know them, and to get to understand this
wonderful business. Now back to your
question, what are our customers thinking
right now? Let's start with the
colleagues. Colleagues 'helpfulness'
scores have gone up to 80% which
is incredibly high. We know however our
biggest opportunity is to really improve
the perception of quality for our Fresh
food especially, as we were talking
about, and there while we have been
improving over the last few years, we are in
fact the most improved retailer over the
last year. It wasn't until we broke with
our new
campaign
that that score really accelerated and
improved. We now see an improvement of
5% year-on-year. Fantastic. So
what's next then with Food Love Stories?
We really continue to perform and
concentrate on the quality of our food
and to make sure that that is
communicated very clearly to our
customers, together with the value that
we can offer through the wonderful
offers and a good pricing that we have.
Now with that the only thing that's left
for me to do is to say thank you, you
know, to nearly a half a million
Tesco colleagues around the world. I hope
you're proud of the results that we've
announced today. Certainly I'm proud of
the results that together we've generated
this last year. You know, it's two and a
half years ago that I joined Tesco and
if you'd have told me back then that we
would be here now ahead of where we said
we would be on that recovery for our
business I definitely would have taken
it, but it really is to the credit of
every colleague in the business and our
partners outside who have shown how much
they care about the business, but applied
themselves and their expertise to
serving our shoppers a little better
every day and for that I thank you very
much indeed.

Tesco | Full Year Results 2016/2017

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