Britain's biggest supermarket Tesco books £825m pre-tax profit

Tesco counted the cost of the coronavirus disease pandemic as full-year profits fell by a fifth despite "exceptionally strong" sales growth, Sky News reports.

Britain's biggest supermarket group reported pre-tax profits of £825 million  for the year to 27 February, 19.7 percent lower than a year earlier even as UK like-for-like sales grew by 7.7 percent to £39.4 billion and online capacity doubled.

That was after Tesco faced coronavirus  costs - including bonuses for staff - totalling £892 million and also took a £535 million hit on business rates relief handed back to the government.

Tesco said it had won customers "from all key competitors" with especially strong sales growth as customers stockpiled at the start of the first national lockdown last year and again when tighter restrictions were imposed more recently.

The company said it expected some of the sales gains "to fall away as coronavirus disease restrictions ease" though expected coronavirus costs of just over £200 million will take a smaller chunk out of profits.

Tesco chief executive Ken Murphy said: "Tesco has shown incredible strength and agility throughout the pandemic.

"By putting our customers and colleagues first we have built a stronger business.

"I'd like to say a huge thank you to the entire team for rising so selflessly to every challenge they've faced.

"Their efforts have been truly heroic."-Photo: Sky News