Tesco reports half year profits of £1.3bn

By Hamish Champ

- Last updated on GMT

Related tags: Supermarket

The pub sector has not been the only sector to feel the brunt of the recent wet summer in the UK.The poor weather impacted the trading performance of...

The pub sector has not been the only sector to feel the brunt of the recent wet summer in the UK.

The poor weather impacted the trading performance of Tesco in the first half of 2007, according to the supermarket giant, which today announced its half year results.

Tesco said overall sales for the six months to August 25 2007 were £24.7bn, up 9.2 per cent, while profits before tax for the period were up 18 per cent at £1.3bn.

One of a number of supermarkets whose alcohol promotions have infuriated licensees up and down the country, Tesco reported the pattern of trading during the first half was "unusual".

"Although our first quarter performance was ahead of budget," said the group's chief executive Terry Leahy, "sales subsequently slowed during June and July as we experienced a prolonged period of unseasonably cold, wet weather, compared with the particularly warm, early summer last year.

Leahy said that August saw sales strengthened significantly, as the same month last year was comparatively cooler, and trade "also benefited from the response of customers to our latest round of price cuts".

Leahy meanwhile said Tesco continued to work with the Competition Commission inquiry into grocery retailing.

"We look forward to their provisional findings later this month and their final report, which is now scheduled for March 2008.

"This is a very competitive industry from which consumers benefit hugely and it is important that the regulatory authorities give due weight to this."

Related topics: Other operators

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