Tesco will remain, even though its profits have decreased

By: Trademagazin Date: 2024. 04. 16. 12:10

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Ken Murphy, CEO of Tesco, stated in a statement that the company remains committed to Hungary and other Central European markets where it is present. Despite the fact that their operating profit decreased significantly in the last business year, Tesco does not plan to withdraw from the region, reports Privatbankár.

Tesco’s Central European businesses achieved an operating profit of 90 million pounds (more than 41.4 billion forints) in the 2024/2023 financial year, which is 50 percent less than the previous year. This is due to the increase in costs and the unfavorable regulations in Hungary (the special tax affecting large supermarket chains). In the open stores operating in the region, Tesco’s sales increased by only 0.2 percent in the period.

At the same time, Tesco performed outstandingly in its home market, the United Kingdom. Thanks to the increase in sales, the company achieved a profit of 2.3 billion pounds (more than 10,580 billion forints) in the previous business year, which is a significant increase compared to the previous year, when they achieved a profit of 882 million pounds. The successful performance in the UK market allows them to compensate for the difficulties experienced in the Central European markets and reinforces their commitment to the region.