Tesco’s Irish arm generated sales of €3.3 billion for the financial year ending in February 2024, 9.4 per cent up on the previous year, which the company described as a “strong outcome against a background of global price commodity volatility”.
Its after-tax profit rose by 10 per cent to €94.7 million while the company paid a dividend of €100 million on February 6th, 2024, to its international parent, down from €119.7 million a year earlier.
Tesco Ireland recorded an operating profit margin of 3.7 per cent for the financial year, down from 4 per cent in the previous 12 months. The company’s operating profit fell 0.6 per cent to €119.6 million. “The main driver of this decrease was inflation cost increases in energy costs and payroll costs,” it said.
According to accounts filed with the companies offices, Tesco Ireland, which operates 178 stores in the Republic, said like-for-like sales grew 6.8 per cent, “driven by strong and consistent volume growth”.
“We continued to do our best for customers as in the inflationary environment they struggled to manage their bills, lowering the price of hundreds of products through our ‘price cuts’ campaign, which resulted in a gradual decline in inflation across the year,” Tesco said.
[ Tesco looking to hire 1,200 temporary staff for Christmas rushOpens in new window ]
The company also noted that the return to a more positive Euribor interest rate boosted the company financials to the tune of €14.4 million, up from €2.7 million the previous year.
Tesco’s corporation tax charge increased to €25.5 million from €22.6 million a year earlier, an effective rate of 21 per cent. Its total payroll costs amounted to €445 million last year, up from €420 million. This included a minimum 4 per cent pay award for retail and distribution staff.
The British grocery retailer said it commanded a market share in the Republic of 23.6 per cent last year, up from 22.9 per cent in the previous period.
Tesco said it opened five new stores in Ireland – Adamstown, Two Oaks, Charlemont Square in Dublin, Ferrybank in Kilkenny and Counting Housing in Cork – on the back of 13 outlets opened during the previous 12-month period, “contributing to the strong growth”.
Tesco Ireland interim chief executive Geoff Byrne said the company was “committed to growing our reach” on the back of a strong investment plan.
“Looking forward, our strategic growth plans are strong; we are opening new stores, creating new, local jobs in our communities, and this investment positions us well for the future,” he said.
Tesco is one of Ireland’s largest grocery retailers, having operated in the Irish retail market since 1997. It employs more than 13,500 people. The company is the single largest retail purchaser of Irish food and drink in the world, buying €1.6 billion a year, more than any single country in the European Union.
Earlier this month, Tesco Ireland announced plans to create almost 1,200 temporary festive roles across its store network. “These roles are designed to offer flexible hours, a variety of shift options and competitive benefits from day one, making them attractive for those looking for work over the festive season,” it said.
In its latest accounts, Tesco noted “there continues to be a growing level of sophistication and the scale of targeted cyber-attacks”.
“Our strategy to minimise this risk focuses on a group-wide control framework including leak prevention, early detection and prevention of cyberattacks,” it said.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
