Tesco ČR’s Profit Drops by Over 85% in the Previous Financial Year

The net profit of Tesco Stores, a food retail chain in the Czech Republic, for the financial year ending on February 28, 2023, decreased by 85.6% to 113 million Czech koruna. However, the company’s revenues increased by approximately 3.6 billion Czech koruna to 45.7 billion Czech koruna. Tesco Stores is a part of the British group Tesco PLC.

Under Tesco PLC, Žabka stores also reduced their losses in the same financial year in the Czech Republic from approximately 47.1 million Czech koruna to 13 million Czech koruna. The franchise network’s revenues amounted to nearly 1.6 billion Czech koruna, an increase of 179.6 million Czech koruna. This information was derived from the companies’ annual reports in the Collection of Deeds.

Tesco has consistently emphasized that it has more than 180 stores and operates 17 petrol stations in the Czech Republic. The number of Žabka stores exceeds 120.

The past financial year was primarily affected by the Russian invasion of Ukraine and its consequences, such as inflationary pressures. Tesco stated, “These factors directly impacted our customers’ financial situation and increased our operational costs, particularly within our supply chain. As these inflationary and economic risk factors are critical components of our financial performance, we continuously evaluate them and implement measures to mitigate them,” as stated in the financial statement.

In the previous financial year, Tesco Stores in the Czech Republic employed 7,010 people, 266 fewer than the last year. The company spent approximately 4.67 billion Czech koruna on personnel costs, including salaries, social security, health insurance, and employee benefits. This represents an increase of roughly 69 million Czech koruna compared to the 2021/2022.

According to Tesco PLC, the group reported revenues of approximately 57.7 billion pounds (around 1.6 trillion Czech koruna) in the fiscal year 2022/2023, as stated on their website.

Lidl, which belongs to the German Schwarz Group, is the largest food retailer in the Czech Republic. In the business year from March 1, 2022, to February 28, 2023, Lidl’s net profit decreased by about six percent to 5.18 billion Czech koruna. However, the company’s revenues increased by approximately ten percent to 84.36 billion Czech koruna. Lidl operates 317 stores in the country.