esco has revealed that its income tumbled by round a fifth over the previous yr after coronavirus prices of virtually £900 million offset surging gross sales.
The grocery store big mentioned on Wednesday morning that pre-tax income slid to £825 million for the 12 months to February, in contrast with £1.03 billion the earlier yr.
It mentioned income had been weighed down by £892 million in Covid-related prices and the corporate’s determination handy £585 million in enterprise charges aid again to the Authorities.
The bumper invoice of pandemic prices was significantly pushed by hiring workers to cowl employees impacted by Covid-19 and funding in security in shops.
Tesco employed nearly 50,000 non permanent employees throughout the pandemic, about 20,000 of whom have joined the retailer completely.
It had benefited from a soar in demand for groceries throughout the pandemic, with extra meals eaten at residence amid restrictions on the hospitality sector and adjustments to working habits.
Group gross sales excluding gas elevated by 7% to £53.4 billion for the yr, buoyed by hovering on-line gross sales.
On-line gross sales jumped by 77% to £6.3 billion within the UK as the corporate doubled supply capability to fulfill rising demand from housebound clients.
The group mentioned it has pumped vital funding into maintaining its costs low in a bid to match its low cost rivals, with Tesco launching its Aldi Worth Match marketing campaign final yr.
It mentioned it has made progress within the “worth notion” amongst clients because of this.
Chief govt Ken Murphy mentioned: “Tesco has proven unbelievable energy and agility all through the pandemic.
“By placing our clients and colleagues first, now we have constructed a stronger enterprise.
“Whereas the pandemic shouldn’t be but over, we’re well-placed to construct on the momentum in our enterprise.
“We’ve strengthened our model, elevated buyer satisfaction and improved worth notion.”
Donald Brown, senior funding supervisor at Brewin Dolphin, mentioned: “Tesco’s outcomes mirror the typically tough place that supermarkets discovered themselves in over the past yr.
“Though they’ve largely been in a position to commerce via the final 12 months, this has include vital further prices.
“The dividend remaining protected, albeit unchanged from final yr, is a constructive signal and suggests administration are comparatively assured within the medium-term outlook.”
Shares within the firm moved 3.1% decrease to to 224.9p in early buying and selling.