Tesco ended the business year with a significant loss
Tesco ended its 2023 business year with a significant HUF 21.5 billion loss, which presented the company with serious challenges. The reasons for the loss were analyzed in detail by the company in an interview with the economic portal Pénzcentrum.
The decrease in Tesco’s income occurred despite the fact that in the 2023 business year, the net sales of domestic sales decreased by only HUF 1.6 billion, which fell from HUF 720 billion to HUF 718.7 billion. However, the decline despite the inflationary environment shows that the company’s financial results were not favorable.
One of the main reasons for Tesco’s loss is that hypermarkets, which are located on the outskirts of major cities, are at a disadvantage compared to smaller stores closer to city centers. People’s purchasing power has decreased and nearby smaller shops have been favored. Zsolt Pálinkás, CEO of Tesco Magyarország, said that in the current economic environment, discount stores and smaller stores have an advantage because they are closer to customers.
The special retail tax also placed a significant burden on Tesco, which cost the company HUF 25 billion. A significant part of the company’s turnover comes from non-food products, and in the inflationary environment, people spent primarily on food, so the demand for non-food products decreased.
Rising energy prices have also hit Tesco hard, as the company has a large property portfolio, resulting in higher energy costs. The price cap and the losses related to the mandatory promotions also contributed to the company’s negative results.
Related news
Shopper Park Plus Plc. acquired a retail park portfolio in Slovakia
Shopper Park Plus Plc. (SPP) has acquired a Tesco-centric retail…
Read more >Here is NAV’s 2025 audit plan – new forms of audit, new areas in focus
The NAV 2025 audit plan has been published, in which,…
Read more >NAV President: the data reconciliation procedure further whitens the economy
The National Tax Office (NAV) will focus more on filtering…
Read more >Related news
Viktor Orbán on Kossuth Radio: traders cannot add more than 10 percent to the purchase price
Traders cannot add more than 10 percent to the purchase…
Read more >GKI Analysis: Why are food prices constantly rising?
In recent times, the rise in the prices of basic…
Read more >Online grocery shopping also surged ahead of Christmas
The run-up to Christmas affected sales by online supermarket Kifli.hu…
Read more >