Company overview Flashcards
When was Tesco founded?
1919
What is Tescos market share & 2024 revenue?
27.7% marker share as per latest Kantar Data
£68.9bn 2024A revenue
Marketplace
Launched 4th June
3rd party marketplace
Over 10,000 products with a focus on DIY, garden, homeward & toys
Marketplace
Launched 4th June
3rd party marketplace
Over 10,000 products with a focus on DIY, garden, homeward & toys
Dunhumby
Tesco’s retail media business that tracks shopping data, limited information on scope and revenue currently but Sainsbury’s equivalent Nectar 360 is expected to deliver £100mn in revenue over the next 3 years - c. 10% of their LTM revenue
Walmart retail media division expected to deliver $10bn by 2029
Analysts High margin expectation of 65%
Whoosh
Same day home delivery, aims to be delivered within 60 minutes
Whoosh covers 66% of the UK
Charles Alfred Wilson, Shareholder
Former UK&Ireland CEO and Tesco board member for 15 years
Booker
Retail and wholeseller
Have wholesales stores and sell to smaller shops - also own Londis & Premier convenience stores
Accounted for 13% of group revenue in 2024
Booker sales excluding tobacco were up 11% (structural issue in the tobacco market with declining demand, convenience stores so a lot of their revenue comes from tobacco, Tobacco sales down 4% in the year)
Why not included Tesco bank?
Continuing operations accounted for £811m, 1.2% of group revenue
Why did Tesco sell the Bank
Sold for £600m to Barclays.
Strategic review wanted to shift focus to its core food and retail business
As part of a 10-year agreement, Tesco will receive £50m in additional fees from new account and club card participation fees
I think it’s a good plan - 10-15 years ago it looked like supermarkets could shake up the industry and challenge high street banks, but their ready made in store branches became much less relevant as technology advanced and now it’s app-based competitors like Monzo and Starling who are the true challengers
How much did the bank being sold make last year?
Made £85million operating profit in 2023
What’s Tescos market cap?
£23.1bn
Why was Tescos revenue growth negative in 2021?
2
Large one off costs:
- hiring more staff to cover online deliveries
- to cover employees off sick or self-isolating
Booker’s catering section took a hit as cafes and resteraunts closed
Why did revenue go up in 2023 but EBITDA went down?
Inflationary environment, prices up but general expenses higher proportionately, electricity for example
