Tesco profits tumble

8 Oct 2015

UK supermarket chain Tesco has reported a significant drop in year-on-year profits, falling 54.6% from £779 million to £354 million in the half year. Like-for-like sales performance in the UK was down 1.1% , while international sales were ahead 1.0%. The company noted, however, that transactions were up 1.5% and volumes up 1.4%. “We have […]

Tesco profits tumble

130980-004-37A6E8BCUK supermarket chain Tesco has reported a significant drop in year-on-year profits, falling 54.6% from £779 million to £354 million in the half year. Like-for-like sales performance in the UK was down 1.1% , while international sales were ahead 1.0%. The company noted, however, that transactions were up 1.5% and volumes up 1.4%.

“We have delivered an unprecedented level of change in our business over the last twelve months and it is working,” said Dave Lewis, Chief Executive.The first half results show sustained improvement across a broad range of key indicators. In the UK, we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment. Our transformation programme in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions. We have concluded our portfolio review with the sale of Homeplus, our business in Korea, enabling us to take a significant step forward on our priority of strengthening the balance sheet. Further progress will be driven by continuing to increase the level of cash generated from our retained assets.”