Tesco supermarket equuity, debt and subsidiares

Accuracy score :
97%

Tesco PLC ADR  TSCDY

Summary (from latest annual report – 2016, fiscal year ends in February)

  • Total equity: 8.62 billion USD
  • Market Cap is 20.4 billion USD ( last price of the stock is 7.49 USD)
  • Tesco PLC is a retail company that sells groceries, clothing, and general merchandise. The Company through its subsidiaries also offers services such as telecoms, digital entertainment and banking
  • Equity of total company increased from 7.07 billion USD in 2015 to 8.62 billion in 2016
  • Company has 3.08 billion USD in cash on account (from latest annual report2016 year)
  • Total equity – cash on account = 8.62 billion USD – 3.08 billion USD = 5.54 billion USD
  • In 2016 company has 10.62 billion USD long-term debt, short – term debt is 2.81 billion USD(In 2015 company had 1.99 billion USD short-term debt , long-term debt was 12.26 billion USD)
  • Other current liabilities in 2016 are 11.53 billion USD
  • In latest annual report - total equity increased to 8.62 billion  USD from 7.07 billion USD in 2015, total debt is 13.43 billion USD in 2016)
  • Company's revenue decreased in 2016 (latest annual report) to 54.43 billion USD from 62.28 billion in 2015
  • Net income in 2016 was 138 million USD, Net loss in 2015 was 5.7 billion USD
  • In 2015 company paid 914 million USD dividend to its shareholders

Tesco PLC ADR  TSCDY

 

Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by profits and second-largest retailer in the world measured by revenues. It has stores in 12 countries across Asia and Europe and is the grocery market leader in the UK (where it has a market share of around 28.4%), Ireland, Hungary, Malaysia, and Thailand.

 

 

TSCDY standalone subsidiaries and acquisitions :

 

  • In May 1987, Tesco completed its hostile takeover of the Hillards chain of 40 supermarkets in the North of England for 320 million USD
  • On 21 March 1997 Tesco announced the purchase of the retail arm of Associated British Foods, which consisted of the Quinnsworth, Stewarts and Crazy Prices chains in the Ireland and Northern Ireland, plus associated businesses, for 935 million USD
  • In 2002 Tesco purchased 13 HIT hypermarkets in Poland worth 680 million USD
  • In 2002 Tesco purchased T & S Stores for 773 million USD
  • In June 2003 Tesco purchased the C Two-Network in Japan for 250 million USD
  • In 2003 it also acquired a majority stake in Turkish supermarket chain Kipa for 118 million USD
  • In January 2004 Tesco acquired Adminstore, owner of 45 Cullens, Europa, and Harts convenience stores, in and around London for 80 million USD
  • Tesco acquired a 90% stake in the Hymall chain worth 500 million USD, from Ting Hsin
  • In mid-2006 Tesco purchased an 80% stake in Casino's Leader Price supermarkets in Poland, which were then rebranded as small Tesco stores worth 100 million USD
  • Tesco acquired a small I.T. support company called The PC Guys in 2007 for undisclosed amount ( worth under 20 million USD)
  • In 2007, Tesco acquired the Malaysian operation of the wholesaler Makro, which was then rebranded as Tesco Extra and provides products for local retailers worth 100 million USD
  • Tesco's garden centre subsidiary, Dobbies, operates 35 centres across Scotland, England and Northern Ireland. Tesco completed its acquisition of Dobbies in 2008 for 230 million USD, and the company continues to trade under its own brand, from its own head office in Melville, near Edinburgh
  • On 28 July 2008, Tesco announced that they would buy out the Royal Bank of Scotland's 50% stake in the company for £950 million. In October 2009, Tesco Personal Finance was rebranded as Tesco Bank worth 2.8 billion USD
  • In 2011, Tesco acquired Dunnhumby, Dunnhumby is a UK-based customer science company worth 150 million USD
  • In 2012, Tesco invested in a new coffee shop chain, named Harris + Hoole worth 50 million USD
  • Tesco purchased the restaurant and cafe chain Giraffe in 2013 for 70 million USD
  • Tesco Mobile has more than 4 million customers, the service is a joint venture with O2, and Tesco’s 50% share worth 1 billion USD

 

Total = 8.15 billion usd

 

Tesco has expanded its operations outside the UK to 11 other countries in the world. Tesco pulled out of the USA in 2013, but continues to see growth elsewhere. Tesco's international expansion strategy has responded to the need to be sensitive to local expectations in other countries by entering into joint ventures with local partners, such as Samsung Group in South Korea (Samsung-Tesco Home plus), and Charoen Pokphand in Thailand (Tesco Lotus), appointing a very high proportion of local personnel to management positions. It also makes small acquisitions as part of its strategy: for example, in its 2005/2006 financial year it made acquisitions in South Korea, one in Poland and one in Japan.

 

U.K division is worth 14 billion usd

Europe division is worth 3 billion usd

Asia division is worth 3.4 billion usd

 

Europe

Czech Republic - Tesco has 322 stores in the Czech Republic. It is a market leader in the country

Tesco has 213 stores in Hungary, 460 stores in Poland, 160 in Slovakia (Tesco in Slovakia operates mobile network "Tesco Mobile" and also petrol stations), 137 in Republic of Ireland.

France (closed) - Tesco owned a French food retailer called Catteau between 1993 and 1997, which operated a chain of 92 stores in NE France under the Cedico, Hyper Cedico and Cedimarche banners. Tesco also operated a "Vin Plus" outlet in Calais, selling wine, beer and spirits, which closed on 30 August 2010

 

Asia

China - Tesco acquired a 50% stake in the Hymall chain, from Ting Hsin in September 2004. In December 2006 it raised its stake to 90% in a £180 million deal. Most of Tesco China's stores are based around Shanghai, but according to Tesco it plans to equip the business to expand more quickly and in different areas. Tesco has a large store in Weifang, Shandong province, and a further two floor store in Taizhou, Jiangsu province. The Tesco in Taizhou offers imported beers and spirits, some imported wines, and Australian, French, Italian and Dutch cheese products. A Tesco Express in the Shanghai Old Street area is no different from a typical Chinese convenience store in both style and products on display. Tesco has been increasing its own brand products into the Chinese market as well as introducing the Tesco Express format. In May 2014 Tesco made a deal with the state-run China Resources Enterprise (CRE) to create a joint venture, combining Tesco's 131 stores in the country with CRE's nearly 3000 outlets. With Tesco owning 20% of the business and CRE 80% this was now the largest food retailer in China.

India - Tesco has had a limited presence in India with a service centre in Bangalore, and outsourcing. In 2008 Tesco announced their intention to invest an initial £60m ($115m) to open a wholesale cash-and-carry business based in Mumbai with the assistance of the Tata Group.

Thailand - Tesco has 1092 stores in Thailand, this is one of the company's largest businesses outside of the UK. Tesco entered Thailand in 1998 and operates through 380 stores as part of a joint venture with Charoen Pokphand and named the operation "Tesco Lotus". This partnership was dissolved in 2003 when Charoen Pokphand sold its shares to Tesco.

Tesco has 121 stores in Japan, 57 in Malaysia, 190 in Turkey

South Korea - Tesco launched its South Korean operations as "Homeplus" in 1999 and partnered with Samsung. On 14 May 2008, Tesco agreed to purchase 36 hypermarkets with a combination of food and non-food products from E-Land for $1.9 billion (£976 million) in its biggest single acquisition, making Tesco the second largest in the country. The majority of the E-Land stores formerly belonged to French retailer Carrefour before 2006 and most of the stores will be converted to Home plus outlets. Tesco's South Korean discount store chain, Home Plus, currently has 66 outlets.In September 2015 the company was sold to MBK Partners, a South Korean buyout firm, which partnered with a Canadian pension fund and Singapore's Temasek Holdings in a transaction worth 4.2 billion pounds. The sale should be completed by the end of the year.

 

 

Opinion about the company

Fundamentally it is a good company and in the future we can expect its growth (Total debt is very big -13.43 billion usd, company has 3.08 billion USD in cash on account, ROE is around 1.8 %).

 

 

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