Summary: Tesco PLC

With more than £60 billion annual retail sales (pro forma the contribution from the acquisition of wholesaler Booker Ltd.), Tesco is the largest U.K. retailer, holding the leading position in the domestic grocery market, where it generates more than 80% of its retail sales. Tesco benefits from its strong positions in a number of emerging markets in Central and Eastern Europe and Asia, and its leading position in the U.K. online grocery market, covering 99% of U.K. households. Tesco has advanced in the execution of its merchandising strategy and cost control program and demonstrated steady improvement in profitability, with an S&P Global Ratings-adjusted EBITDA margin of 6%-7% over the medium term--comparing favorably with that of other grocery retailers. The recent

...Business Risk: Strong Financial Risk: Aggressive + With more than ú60 billion annual retail sales (pro forma the contribution from the acquisition of wholesaler Booker Ltd.), Tesco is the largest U.K. retailer, holding the leading position in the domestic grocery market, where it generates more than 80% of its retail sales. + Tesco benefits from its strong positions in a number of emerging markets in Central and Eastern Europe and Asia, and its leading position in the U.K. online grocery market, covering 99% of U.K. households. + Tesco has advanced in the execution of its merchandising strategy and cost control program and demonstrated steady improvement in profitability, with an S&P Global Ratings-adjusted EBITDA margin of 6%-7% over the medium term--comparing favorably with that of other grocery retailers. + The recent acquisition of Booker and purchasing alliance with Carrefour are supportive for the business in the long term. This is because combined scale underpins stronger purchasing...

Summary