Tesco’s preliminary results for FY20/21 were ahead of consensus but below our estimates. The strength in the UK & ROI was offset by a weak show in Central Europe and Tesco Bank. Going forward, we expect some moderation in sales but the operating profit is estimated to improve. Online is also likely to remain a key growth engine. We will be trimming the financial estimates but maintain the positive stock recommendation.
14 Apr 2021
A softer closure to the year
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A softer closure to the year
Tesco PLC (TSCO:LON) | 289 -4.6 (-0.5%) | Mkt Cap: 20,350m
- Published:
14 Apr 2021 -
Author:
Nishant Choudhary -
Pages:
3
Tesco’s preliminary results for FY20/21 were ahead of consensus but below our estimates. The strength in the UK & ROI was offset by a weak show in Central Europe and Tesco Bank. Going forward, we expect some moderation in sales but the operating profit is estimated to improve. Online is also likely to remain a key growth engine. We will be trimming the financial estimates but maintain the positive stock recommendation.