TSCDF - Tesco PLC (TSCDF) Preliminary Results 2023/24 Call Transcript
2024-04-10 11:12:09 ET
Tesco PLC (TSCDF)
Preliminary Results 2023/24 Conference Call
April 10, 2024, 4:00 AM ET
Company Participants
Ken Murphy - Group Chief Executive
Imran Nawaz - Chief Financial Officer
Conference Call Participants
Andrew Gwynn - Exane BNP Paribas
Izabel Dobreva - Morgan Stanley
Nick Coulter - Citi
James Anstead - Barclays
Sreedhar Mahamkali - UBS
William Woods - Bernstein
Francois Digard - Kepler Cheuvreux
Clive Black - Shore Capital
Presentation
Ken Murphy
Good morning, everyone, and welcome to our preliminary results presentation. I'm joined in Welwyn by our CFO, Imran Nawaz, and we're delighted to update you on our performance for the year.
I'm really pleased to announce another strong set of results for Tesco, which reflect our efforts to grow and innovate, ensuring we provide the best value for money, quality and service for our customers. Our passion for people and product continues to be a winning formula with all drivers of customer satisfaction and market share growing strongly.
We're seeing signs of improving consumer sentiment, but we know that cost of living pressures are still a challenge for many. We're committed to doing everything we can to drive down food bills without ever compromising on quality. We've continued to invest in our customers, supporting our position as the cheapest full-line grocer.
We're investing in our people with a record pay increase and new well-being benefits as well as an addition 2.5 million colleague hours in our large stores and around a 1,000 new store positions by the end of the financial year. We've also invested in the future growth of the business, opening new stores, refreshing existing ones, reducing costs and developing solutions to improve productivity.
We've now established a firm track record of delivery, giving us the confidence to continue driving value for all our stakeholders. Before I come on to talk about performance for the year, I wanted to say a few words about the recently announced sale of our banking operations and future partnership with Barclays.
We're really delighted to be combining the scale and reach of the Tesco brand with the Barclays expertise in financial services. The exclusive partnership will allow us to continue providing our customers with Tesco-branded banking products and services. The sale of our banking operations in credit cards, savings and personal loans will simplify our business and significantly reduce our financial liabilities.
We are retaining our insurance, travel money, ATM and gift cards businesses. These are all capital-light profitable and they strongly complement our existing offer for customers. Barclays will deliver banking services to customers under the Tesco Bank brand, combining its own expertise in banking with the benefits enjoyed by millions of Tesco customers, including Clubcard points and Clubcard prices.
By working with one of the UK's leading banks, we will be able to offer our customers new and innovative services, which will continue to benefit from Tesco Clubcard's unique insight and digital capabilities. Looking forward, our aim is to be the best provider of financial services in the UK, unlocking greater value for customers and for our shareholders....
Tesco PLC (TSCDF) Preliminary Results 2023/24 Call Transcript