Tesco CEO Ken Murphy reveals profits halved
DUBLIN: Inflation and price hikes affecting the common man have reportedly hit the big supermarkets too. Tesco CEO Ken Murphy has confirmed that the major supermarket chain Tesco’s annual profit has halved.
The world’s largest supermarket has been accused of making unprecedented profits while hundreds of thousands of people go hungry. After it was reported that Unite general secretary Sharon Graham also made this allegation, the company released the profit figures.
Tesco CEO Ken Murphy has denied reports that the supermarket giant is making excessive profits from people struggling with high living costs.
Pre-tax profit fell to €1 billion from €2 billion in the year to the end of February. In addition, operating profit fell 6.9% to €2.6 billion. Tesco’s chief attributed the impact to three factors: weak sales, increased business investment, and a sharp increase in costs.
The CEO said that Tesco, along with consumers, is under great pressure due to rising inflation. While the consumers suffered due to the increase in prices, the various taxes imposed by the suppliers, etc., also increased the costs of the supermarkets.
But despite these problems, the Tesco chief said the Christmas market had performed well. According to Kantar data from January, Tesco had the largest market share in the UK. The CEO also revealed that Irish sales at Tesco supermarkets were up 3.3 percent.
At the same time, Tesco Ireland has made significant gains, according to Natasha Adams, Tesco Ireland’s chief executive. By the end of the year, Ireland’s market share had risen to 22.9%, with total sales up 5.4%. The nine Joy’s stores that were purchased in Galway in June were reopened as Tesco stores, and four new convenience stores opened in Ireland.
“We are delighted with Tesco’s operations in Ireland,” said Natasha Adams, chief executive of Tesco Ireland.
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