Tesco has posted a healthy increase in pre-tax profits for the six months to August 25, although its UK like-for-likes sales were affected by the wet summer weather.
The UK's biggest grocer delivered an 18 per cent climb in group pre-tax profits to£1.29 billion over the period, on a group sales rise of 9.2 per cent to£24.7 billion.
UK sales increased by 5.4 per cent to£18.3 billion, but like-for-like sales growth slowed to 3.5 per cent, excluding petrol. The retailer’s non-food sales in the UK jumped 9.9 per cent and the Tesco Direct non-food catalogue and web site continue to trade well.
Sales slowed during June and July, as the UK experienced a prolonged deluge, but strengthened again in August, as customers responded to its latest round of price cuts. International sales climbed 22 per cent.
Tesco chief executive Sir Terry Leahy said: “Tesco has delivered strong first-half progress across the group, despite the challenges posed by the start-up investment required to establish our new US and Direct businesses and by the effects of poor summer weather in the UK.”
He added that the grocer was “just a few weeks away” from opening its first Fresh & Easy convenience store on the US West Coast.
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