Tesco profits grow but UK subdued

5 October 2011 Last updated at 02:35 ET

UK sales were subdued, Tesco said

Supermarket group Tesco has reported a rise in half-year profits despite a fall in underlying sales in the UK.

Pre-tax profit for the 26 weeks to 27 August was £1.9bn, up 12.1% on a year earlier. Group sales rose 8.8% to £35.5bn, but like-for-like UK sales excluding VAT and petrol fell 0.5%.

The company highlighted “excellent growth” in Europe and Asia but also “subdued demand” in the UK.

Tesco makes about two-thirds of its sales and profits in the UK.

It contrasted the “challenging conditions” in developed countries, particularly the UK and the Irish Republic, with “continued strong growth in emerging economies”.

The company said “weak” sales in the UK were not helped by slowing demand for non-food items, particularly in electronics and entertainment, two of its largest product groups.

Like-for-like sales excluding petrol grew in regions outside the UK, with the US seeing sales growth of almost 12%. The company said its plan to break even in the country in the 2012-13 financial year was “showing promising early results”.

Like-for-like sales in Europe grew by 1% and in Asia by 3.8%.

— ’re ’s , . : A ‘Malign Intellectual Subculture’ – George Monbiot Smears Chomsky, Herman, Peterson, Pilger And Media Lens.