1.1 Billion Pounds Profit

[tdiplc]

Tesco have posted a profit of almost 1.1 billion Pounds this morning.

That's not turover, it's pure profit.

That is truly astonishing.

Do you think:

a) It is truly inspiring and brings wealth, employment and choice to this and other nations?

cool.gif Is it insidious profiteering that degrades communities and takes advantage of poverty in 3rd world countries?

c) Have I missed something unsure

Your thoughts please.

[Scarlet Pimpernell]

I wonder what the farmers make of it. I know the farmers are always getting handouts and mostly subsidised, but regardless - when they are forced to sell milk at 1p profit for 20 litres or whatever it is that they make this must hurt!!

Pure greed on the part of tesco. That's one view...

Blooming good business is another view...

The Banks are no better either!

[fatpieman69]

I don't know all the in's and out's but I personaly like tesco's there well priced and there own products are not too cheap and nasty (except for the really cheap baked beans! ). they always seem to have what we want too.

I like them, if they can make that much money then well done but I like to see them give a little back like for example Richard Branson is giving ALL train profits to research into cleaner fuels!

[maneesh]

Tesco have posted a profit of almost 1.1 billion Pounds this morning.

That's not turover, it's pure profit.

That is truly astonishing.

Do you think:

a) It is truly inspiring and brings wealth, employment and choice to this and other nations?

cool.gif Is it insidious profiteering that degrades communities and takes advantage of poverty in 3rd world countries?

c) Have I missed something unsure.gif

Your thoughts please.

Yes, it is indeed astonishing. Tesco's management team have tremendous vision and are seeking to build a global empire (hence Tesco now in Czech Republic and Thailand). They also want to stretch the brand as far as they can, once they got consumers to trust "tesco" for groceries, they are now selling insurance, mobile phone tariffs etc. Some research done a while back suggested most people would buy a car from "tesco" if they started selling cars, as they would perceive "tesco" to be MORE honest and trustworthy than a mainstream car dealer.

Yes, amazing choice of products instore, but also bad for us, since we are faced with an array of choices, there is such a thing as too much choice. Out of town supermarkets have LED to the decline of the traditional high street, the butchers, the bakers, the corner shop. Economies of scale and buying power have LED to farmers and suppliers being squeezed beyond limits.

[swfcdan]

tesco is taking over the world!

i heard they are opening a few sample stores in the US

[Fidgits]

lets be honest.

They have put the 'small buisness' out of buisness.. nowadays if i see an actual butchers shop its a novelty (and i buy lots there).

They sell most things, not just food, but clothes, electronics etc - and have even gone into banking, insurance etc.

The truth is - if their financial services had been a subsiduary, and all the spurious things away from the actual supermarket were reported seperatley, the number wouldnt be as big - but they'd still have killed the high-street shop.

With all the extra stuff they offer, and the inherent laziness of the british public, im not surprised - however, what it means is more companies going out of buisness, and less choice for the consumer, which i think is a bad thing...

[aido]

Funny you should mention Tesco going into the Czech Republic, I was wandering around one of their stores there yesterday, and it's pretty much a Tesco, Ikea, Halfords, Dixons, and PC World all rolled into one - I've never seen a Tesco in this country on that level of products that they sell.

The one thing that we did notice though was that prices were similar to those over here, not really sure what the average income is over there but they're pretty much paying the same as what we are over here. Also I never noticed any Tesco value brands to be honest, a few of the things which were native products over there seemed cheap though, other items such as the electronics stuff, ie a DVD player, started at £50 - wheresa you can pick them up here for £20 now - makes you wonder why we get the cheaper stuff like that when it would be more beneficial over there. Just gets more customers here I guess by boxshifting who then go on to make impulse buys while they're in there.

[fatpieman69]

lets be honest.

They have put the 'small buisness' out of buisness.. nowadays if i see an actual butchers shop its a novelty

but they'd still have killed the high-street shop.

With all the extra stuff they offer, and the inherent laziness of the british public, im not surprised - however, what it means is more companies going out of buisness, and less choice for the consumer, which i think is a bad thing...

I have to agree actualy, It's a shame that local shops go under but I personaly Use the Local butcher and Fruitery that are next door to my work, quality is alot better but then so are the prices. I, in all honesty, wouldn't use them if i din't work here because of the time factor and local councills around here charge £1 for 20mins parking and its just more hassel when you can go to Tesco's for everything eaisaly.

[Monster-Mat]

Tesco also supplies the MOD food outlets, i.e NAAFI in germany and around the world.

i like TESCO, i was a apprentice butcher for them many moons ago, good company to work for, i think its good that there doing so well, being British and all that

[MacRS200]

And that is for 6 months of trading not a whole year!

Will any of the devotees of 99 octane stop buying it because of the profit, I think not.

According to the BBC one of the biggest rise in profits is from outside the UK where they have 949 outlets. As a UK based company that should be good for balance of trade figures. The growth in "home shopping" is also showing big increases in profits.

What all these numbers don't say is what the turnover was, revenue without VAT was £ 20.7 billion so the profit is only 5.3% before tax. Hardly blatant profiteering IMHO.

INTERIM RESULTS HERE if anyone is interested.

[puresilk]

Huge profits Indeed!

I think they should do more to bring down prices and give a little back to the consumer!

:winky:

[Adie]

Huge profits Indeed!

I think they should do more to bring down prices and give a little back to the consumer!

:winky:

Yep starting with fuel :)

[Fidgits]

lets be honest.

They have put the 'small buisness' out of buisness.. nowadays if i see an actual butchers shop its a novelty

but they'd still have killed the high-street shop.

With all the extra stuff they offer, and the inherent laziness of the british public, im not surprised - however, what it means is more companies going out of buisness, and less choice for the consumer, which i think is a bad thing...

I have to agree actualy, It's a shame that local shops go under but I personaly Use the Local butcher and Fruitery that are next door to my work, quality is alot better but then so are the prices. I, in all honesty, wouldn't use them if i din't work here because of the time factor and local councills around here charge £1 for 20mins parking and its just more hassel when you can go to Tesco's for everything eaisaly.

we have a lot of farm shops around here - i like it because they sell local produce (from other farms too) and the meat is absolutley fresh - and you can see the animals grazing...

[TheDon]

personaly i think they deserve a round of aplause...

But also they are falling victim to the worst part of the british society..... they are being persecuted for doing well.

In america everyone would be praising them etc etc... but here we look at ways of reducing their success.

its sad really, and is a big reason why i am looking to relocate my company outside of the uk within 10 years

[MacRS200]

Like I said above that profit before tax is only 5.3% of turnover. Corporation Tax will account for 30% of that so that's a cool £ 327.6M to the Govt reducing the profit for the share holders to 3.7% of turnover. Also bear in mind they have colllected £2 billion in VAT and paid 12.8% of all wages in NI as well.

its sad really, and is a big reason why i am looking to relocate my company outside of the uk within 10 years

Agreed mate you can avoid being crippled by the tax man as well.

[Purvesh]

Good for them, but I truly feel for the smaller suppliers they exploit (farmers etc) and the local shops that have suffered due to their dominance and imposing their will on them.

[tdiplc]

I wonder what their Corprorate Social Responsibility policy is?

As far as I am concerned, earning money is pointless unless it is put to good use. I love the way that Richard Branson is diverting his profits into biofuel technology (although that may be more of a commercial decision than philanthropic) and that Bill Gates is giving away 95% of his wealth. Very fair play :D

I wonder how much Tesco put back into the community?

[dave1]

Personally I cant stand Tesco. Last bread I purchased dried in no time.........Sainsbury on a Sunday afternoon after the club anytime.( must admit bought TV/DVD Combo there 3 weeks ago)

[TheDon]

I wonder what their Corprorate Social Responsibility policy is?

As far as I am concerned, earning money is pointless unless it is put to good use. I love the way that Richard Branson is diverting his profits into biofuel technology (although that may be more of a commercial decision than philanthropic) and that Bill Gates is giving away 95% of his wealth. Very fair play :D

I wonder how much Tesco put back into the community?

Surely they are already putting back into the comunity by bringing us their product, or to put it better - supplying us all we need. they are obviously putting enough into the comunity for people to trust and buy from them...

of course it could always be better and cheaper, but the quality prevails.. jobs could be seen as comunity favourable policy as well as buying from british farmers rather than just european

[Rsarin]

when i was in the czech republic(lived there for 5 years).Tesco pretty much dictated terms as far as local planning was concerned.A town called Hurka which is 10 mins from town was a residential area,very nice and my halls was not far from there.Tesco was interested in building and they were rejected planning wise.Tesco then built a new swimming pool,sports centre within a minute walk from the residence,guess what months later the store was built.The average income in the czech republic was nothing and proff's were literally on the bread line and still are.The prices are the same as hear if not more expensive,but then its the same in india,if you want a c class merc in dehli,it will cost £60k,and there are tons of them,its one of the poorest countries in the world.

[tdiplc]

I wonder what their Corprorate Social Responsibility policy is?

As far as I am concerned, earning money is pointless unless it is put to good use. I love the way that Richard Branson is diverting his profits into biofuel technology (although that may be more of a commercial decision than philanthropic) and that Bill Gates is giving away 95% of his wealth. Very fair play :D

I wonder how much Tesco put back into the community?

Surely they are already putting back into the comunity by bringing us their product, or to put it better - supplying us all we need. they are obviously putting enough into the comunity for people to trust and buy from them...

of course it could always be better and cheaper, but the quality prevails.. jobs could be seen as comunity favourable policy as well as buying from british farmers rather than just european

Thats true Chris but many truly great companies tithe a proportion of their profits to go to charity or local communities etc. Very fair play :D

[Mr Morse]

Tesco have posted a profit of almost 1.1 billion Pounds this morning.

That's not turover, it's pure profit.

That is truly astonishing.

Do you think:

a) It is truly inspiring and brings wealth, employment and choice to this and other nations?

cool.gif Is it insidious profiteering that degrades communities and takes advantage of poverty in 3rd world countries?

c) Have I missed something unsure

Your thoughts please.

Rather a bizzare statement.....considering?

What does the "plc" in TDiplc stand for?

[MacRS200]

As far as I am concerned, earning money is pointless unless it is put to good use. I love the way that Richard Branson is diverting his profits into biofuel technology (although that may be more of a commercial decision than philanthropic) and that Bill Gates is giving away 95% of his wealth. Very fair play :D

I wonder how much Tesco put back into the community?

Is this a pre-cursor to a big announcement that TDI Plc are going to make a large charitable donation to the local community :D

[Mr Morse]

Would you like to tell us TDi's EBIT % for the financial year 2005?

No?

It was considerably more than Tesco....by a long, long way

[TheDon]

I wonder what their Corprorate Social Responsibility policy is?

As far as I am concerned, earning money is pointless unless it is put to good use. I love the way that Richard Branson is diverting his profits into biofuel technology (although that may be more of a commercial decision than philanthropic) and that Bill Gates is giving away 95% of his wealth. Very fair play :D

I wonder how much Tesco put back into the community?

Surely they are already putting back into the comunity by bringing us their product, or to put it better - supplying us all we need. they are obviously putting enough into the comunity for people to trust and buy from them...

of course it could always be better and cheaper, but the quality prevails.. jobs could be seen as comunity favourable policy as well as buying from british farmers rather than just european

Thats true Chris but many truly great companies tithe a proportion of their profits to go to charity or local communities etc. Very fair play :D

What about their vouchers for school equipment etc..... its definately a step towards the right direction.

But i definately think something such as scholarships for people without the means to go to uni but the brains and tallent. With a work incentive scheme bringing them a wage, maybe investing in creches to allow young single mums to work in their stores and become role models to their children rather than developing the culture of benifit mums and their children who think the only way to get ahead is to have a kid and go on benifits.

Maybe their gestures dont have to be completely selfless, just benificial to those other than the shareholders etc