Tesco reported pre-tax profit of approximately £2.76 billion for fiscal year 2024, its highest since the 2014 accounting scandal. The result reflects disciplined cost management and improved retail margins as the company focused on value perception to defend market share against Aldi and Lidl, while also benefiting from growth in its Clubcard and media data businesses.
Earnings of Tesco
Pre-tax profit in USD equivalent from 1960 through FY2024. GBP/USD at approximate annual averages. Red points mark loss years. The FY2015 loss reflects the £6.4B Goodwill and property impairment following the accounting scandal.
Annual Earnings Of Tesco
| Fiscal Year | Pre-tax Profit (GBP) | YoY Change |
|---|---|---|
| FY2015 | −£6.37B | Loss (scandal impairment) |
| FY2016 | £162M | Recovery |
| FY2017 | £1.28B | +690% |
| FY2018 | £1.30B | +1.6% |
| FY2019 | £1.67B | +28.5% |
| FY2020 | £1.32B | −20.9% |
| FY2021 | £636M | −51.8% |
| FY2022 | £2.03B | +219.2% |
| FY2023 | £2.49B | +22.7% |
| FY2024 | £2.76B | +10.8% |
Note: The FY2015 loss includes a £6.4 billion impairment on property assets and goodwill. FY2021 pre-tax profit was depressed by the disposal gain reversal from Central European operations. Tesco's FY2022 recovery reflects the completion of its portfolio simplification.
Tesco P/E Ratio
| Fiscal Year | P/E Ratio | Note |
|---|---|---|
| FY2015 | N/M | Net loss year |
| FY2016 | 106x | Minimal profit, elevated multiple |
| FY2017 | 17.8x | Earnings recovery |
| FY2018 | 17.2x | Stable |
| FY2019 | 14.6x | Improving earnings |
| FY2020 | 16.7x | Lower profit, stable share price |
| FY2021 | 31.4x | Earnings depressed by disposals |
| FY2022 | 7.8x | Strong profit recovery |
| FY2023 | 7.6x | Consistent performance |
| FY2024 | 8.3x | Slight multiple expansion |