Tesco Share Price Higher After The Sale of Polish Business
Tesco announced today that it sold its Polish business to Salling Group for £181 million to focus on the Czech Republic, Hungary and Slovakia. The deal, which is subject to approval from regulators, includes the sale of 301 stores together with the distribution centres and the headquarters in Poland.
Chief executive officer Dave Lewis said that Tesco had seen significant improvement in its Central European business, but continued to generate losses in Poland up to 107 million. He added that it had strong market positions in the Czech Republic, Hungary and Slovakia.
The company sold its businesses in Malaysia and Thailand in March. Tesco would raise £165 million in cash above the £200 million raised from selling about 22 stores in Poland. Now Tesco will have only 19 stores in Poland.
Tesco During Coronavirus Lockdown
Tesco expanded the delivery slots by 20% and hired 45,000 of extra staff in a move to match the excess demand for online deliveries due to coronavirus lockdown. Tesco also plans to simplify the operational procedures and the range of products to improve the availability of the most popular supplies.
Tesco Full-Year Profits
Tesco full-year sales dropped by 1% to 56.5 billion due to drop in sales in it’s two major markets the UK and Ireland while the operating profit increase by 12.5% to 3 billion, but the company will not provide any guidance for the next year due to coronavirus crisis uncertainty. The full-year dividend was at 9.15p.
Tesco share is 0.43% higher today at 228.1 as the rebound from three-month lows continues. The technical picture for Tesco is bearish for the stock as it trades below all significant daily moving averages.
On the technical side, Tesco share price first resistance stands at 230.1 the daily high. The 50-day moving average at 232.5 will provide the next resistance zone, while a break above would open the way for 234.9 the high from May 28.
On the other hand, immediate support for Tesco will be met at 227.20 the daily low. More robust support stands at 225.30 the low from yesterday’s trading session. A break below 225.30 might open the way for the recent lows at 221.90.