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Tesco’s CEO Dave Lewis comments on company’s profit forecast snafu

Themelina Antoniou
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Tesco’s CEO Dave Lewis comments on company’s profit forecast snafu

Tesco Plc., a food retail giant that trades in the London Stock Exchange and has operations in the UK, Asia and Europe, is facing “challenging times” according to newly appointed CEO Dave Lewis comments earlier today.

Following the company’s interim results statement, Tesco’s share price fell 7% when the FTSE 100 opened, pushing UK stocks lower.

Tesco’s Chairman, Richard Broadbent also announced that he is going to quit over the company’s overstatement profit error resulting in 92% fall in first half profits.

Dave Lewis, former Unilever’s (NYSE:UN) UK and Ireland chairman, gave an interview earlier today to Jody Hodges, who is the Group Project Planning Director at Tesco Plc. concerning the company’s Interim Results 2014/2015, which were reported earlier today.

Lewis commented on the company’s reaction towards their profit overstatement figure that was even larger that the 250 million GBP originally stated. Tesco’s CEO specifically mentioned that Tesco Plc. Is going to be open, honest and straightforward concerning the issue.

Lewis also admitted that the company has not been as competitive and that it needs to rethink and reorganize against its customer agenda.

The company’s CEO stated that Tesco Plc. has three main future priorities.
The first one is to recover and regain their competitiveness at their UK Business. Secondly, the company’s Balance Sheet needs to be protected and strengthened. The third and equally important goal is to built transparency and trust in the Tesco Brand and Business.

Concerning the company’s internal investigation going around Lewis stated that they will fully support the investigation of the regulator (FCA) in order to “find out how those numbers came about and what caused them to be there”.

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