Over the past month the Tesco share price (LON: TSCO) (TSCO.L) has declined by around 4%. In comparison the FTSE 100 index (INDEXFTSE: UKX) has gained 3%.
During that time, the retailer has released preliminary results for the 2021 financial year. Sales increased by 7% on a constant currency basis. The company was able to grow its market share and gained customers from all of its key competitors, according to its update. It also increased online sales to £6.3 billion, which is a rise of 77% versus the previous year.
As a result of factors such as the investment it made in response to Covid-19 and the return of the £535 million in business rates relief, Tesco’s pre-tax profit declined by 19.7%. It concluded the £8.2 billion sale of its Asia business and returned £5 billion of that capital to shareholders while making a £2.5 billion one-off pension contribution.
Its dividend for the full year is 9p per share. This is in line with last year’s level. The firm’s ex-dividend date is 20 May 2021.
Commenting on the company’s full-year results, the retailer’s CEO Ken Murphy said: “While the pandemic is not yet over, we’re well-placed to build on the momentum in our business. We have strengthened our brand, increased customer satisfaction and improved value perception. We have doubled the size of our online business and through Clubcard, we’re building a digital customer platform”.
In addition to its results, there have also been director dealings in the past month. Non-executive chairman John Allan bought 44,426 Tesco shares at a price of 225p on 16 April for a total consideration of £100,000. Non-executive director Steve Golsby bought 8,608 Tesco shares for a total consideration of around £19,400 on the same date.
On the topic of directors, the company announced that Thierry Garnier and Bertrand Bodson will join the firm as non-executive directors. They will commence work on 30 April and 1 June, respectively.
Over the past year the Tesco share price has declined by 28%, while over the past five years it is flat. In comparison, the FTSE 100 index is currently up 13% in the past year, while it has risen by 12% in the past five years. Tesco’s stock currently trades at 220p at the time of writing. It is due to release a first quarter trading statement on 18 June.
Not Investment Advice
Note: Views expressed are those of the writer. The author does not own any stocks mentioned. The article is information, not advice. Share prices can rise and fall. Past returns are not a guide to the future. Please do your own research.