Tesco has reported a 3.5% increase in half-year like-for-like sales excluding petrol.
Like-for-like sales for the second quarter rose 2.4%, down from 4.7% in the first quarter, the retail giant said, although the growth rate in August picked up to around 5%.
Group pre-tax profit for the half-year to 25 August rose 18% to £1.289bn on group sales up 9.2% at £24.7bn.
Despite unseasonal summer weather and recovering competitors, UK sales rose 5.4% to £18.3bn during the period, Tesco said.
“The pattern of our trading during the first half was unusual,” admitted CEO Sir Terry Leahy.
International sales rose 22% to £6.4bn, with like-for-like sales up 1.2% despite “challenging economic conditions and political uncertainty in some markets”.
In the US, Tesco said it was on track to open its first Fresh & Easy stores next month. Start-up costs remained £65m and £17m in costs had been absorbed in the first-half.
Group non-food sales increased 12% to £5.5bn, although entertainment and clothing sales were subdued. Sales at Tesco.com rose 35% to £748m.
Its non-food catalogue business Tesco Direct was expected to generate sales in excess of £150m in the current financial year. Start-up costs and initial operating losses were £15m but this would reduce in the second-half.
“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,” added Sir Terry.
Like-for-like sales for the second quarter rose 2.4%, down from 4.7% in the first quarter, the retail giant said, although the growth rate in August picked up to around 5%.
Group pre-tax profit for the half-year to 25 August rose 18% to £1.289bn on group sales up 9.2% at £24.7bn.
Despite unseasonal summer weather and recovering competitors, UK sales rose 5.4% to £18.3bn during the period, Tesco said.
“The pattern of our trading during the first half was unusual,” admitted CEO Sir Terry Leahy.
International sales rose 22% to £6.4bn, with like-for-like sales up 1.2% despite “challenging economic conditions and political uncertainty in some markets”.
In the US, Tesco said it was on track to open its first Fresh & Easy stores next month. Start-up costs remained £65m and £17m in costs had been absorbed in the first-half.
Group non-food sales increased 12% to £5.5bn, although entertainment and clothing sales were subdued. Sales at Tesco.com rose 35% to £748m.
Its non-food catalogue business Tesco Direct was expected to generate sales in excess of £150m in the current financial year. Start-up costs and initial operating losses were £15m but this would reduce in the second-half.
“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,” added Sir Terry.
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