Blog: Tesco profits plunge, chairman departs
Katy Askew | 24 October 2014
Tesco has reported a massive 92% drop in first half profits as the accounting fiasco continues to widen.
A probe into Tesco's accounting practices has uncovered an accounting black hole that has resulted in a GBP263m profit overstatement.
Former CEO Philip Clarke resigned this summer, before the accounting issues became public. His successor, former Unilever executive Dave Lewis is now faced with the somewhat daunting task of cleaning up the mess.
Lewis has started a strategic review and until this is complete it is unlikely we will see any major strategy shake-up from the UK's largest retailer.
However, what we can expect is for heads to roll.
Eight senior executives have been suspended pending the outcome of the inquiry, which is probing how Tesco logged suppliers' rebates and if they were reported in the correct accounting period.
And - predictably perhaps - alongside the dire profit news delivered to the market this morning was Tesco chairman Sir Richard Broadbent, who confirmed plans to quit.
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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