Tesco 2003 Annual Report Download - page 32

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30 TESCO PLC
notes to the financial statements
NOTE 1 Segmental analysis of sales, turnover, profit and net assets
The Group’s operations of retailing and associated activities and property development are carried out in the UK, Republic
of Ireland, France, Hungary, Poland, Czech Republic, Slovakia,Thailand, South Korea,Taiwan and Malaysia.The results for Thailand,
South Korea,Taiwan, Malaysia and continental European operations are for the year ended 31 December 2002.
2003 2002
Sales Turnover Net Sales Turnover Net
including excluding Operating operating including excluding Operating operating
VAT VAT profit assets VAT VAT profit assets
£m £m £m £m £m £m £m £m
Continuing operations
UK 23,407 21,615 1,297 8,445 21,685 20,052 1,213 7,131
Rest of Europe 3,032 2,689 141 1,658 2,475 2,203 90 1,079
Asia 2,174 2,033 71 1,193 1,494 1,398 29 916
28,613 26,337 1,509 25,654 23,653 1,332
Integration – Rest of Europe (4) –
Goodwill amortisation (21) (10)
Operating profit 1,484 1,322
Share of operating profit from joint ventures 70 42
and associates
Net loss on disposal of fixed assets (13) (10)
Net interest payable (180) (153)
Profit on ordinary activities before taxation 1,361 1,201
Operating margin (prior to goodwill
amortisation and integration costs) 5.7% 5.6%
11,296 9,126
Net debt (note 19) (4,737) (3,560)
Net assets 6,559 5,566
Inter-segmental turnover between the geographical areas of business is not material. Turnover is disclosed by origin. There is no
material difference in turnover by destination.
The Group’s share of turnover in the joint ventures which is not included in the numbers above is £193m (2002 – £151m).
NOTE 2 Analysis of operating profit
2003 2002
£m £m
Turnover excluding VAT 26,337 23,653
Cost of sales (24,340) (21,866)
Gross profit 1,997 1,787
Administration expenses (513) (465)
Operating profit 1,484 1,322
Cost of sales includes distribution costs and store operating costs. Goodwill amortisation, integration costs and employee
profit-sharing are included within administration expenses.