Shares in Tesco touched a three-year high this week after the UK’s largest retailer reported pre-tax profits of £1.3bn (€1.5bn) for its 2017 financial year. Operating profits in the business increased by 28% last year to reach £1.6bn (€1.9bn).

The strong increase in profits at Tesco is down to strong margin recovery in the business, with profit margins increasing from 1.8% in 2016 to a much healthier 3% last year. Tesco saw strong profit growth in its UK and Ireland stores (+31%), as well as at its stores in central Europe (+105%).

After releasing its 2017 financial results, which beat market expectations, Tesco shares soared 15% and are currently trading at £2.35 – their highest since March 2015.

Greencore also enjoyed a positive week, with markets pushing shares almost 17% higher over recent days.

In Ireland, shares in Kerry Group, Glanbia, Aryzta and Total Produce have fallen between 1% and 2% over the week. The other big mover on financial markets this week was oil. Brent crude oil has risen 5% in price over the last week and is now steadily trading above the $70/barrel threshold.

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Strong margin recovery sees profits surge at Tesco