UK-based grocery retailer Tesco has reported an increase in half-year profits thanks to a strong performance in terms of sales in Asia and the US, despite slowing sales growth in Europe and a loss in its domestic UK market.In its results for the 26 weeks to August 27, the UK-based business recorded group sales of £35.5 billion, a rise of 8.8% compared with the first half of 2010 and a 7.8% increase excluding fuel.
Group profit before tax during the period rose by 12.1%, principally driven by the company’s performance in Asia, where like-for-like sales were up by 3.8%, and the US, where sales grew by 11.7%.
Particularly notable was Tesco’s sales growth in China, where it experienced a like-for-like increase of 6.2% through expansion in second and third tier cities.
The company’s Fresh & Easy subsidiary in the US continued to make an overall trading loss of 23% during the half-year, although Tesco forecasts the business will break even by the end of 2012 or 2013.
Sales for the half-year rose 19.8% to $470.5 million, an increase of 23.1% at actual exchange rates, according to Tesco's calculations, or 32% at constant rates.
No comments:
Post a Comment