Tesco have recorded a rise in profits of 18 per cent to £1.32billion in the first half of the year.
The supermarket giant brushed aside the stormy summer weather and investigations by industry regulators to continue its plans for world domination.
Although like for like sales grew at a slower rate of just 3.5 per cent in the six months to August 25 – the lowest rate of growth so far this decade – the retailer recovered in August with a 5 per cent boom in like for like sales .
Chief executive Sir Terry Leahy acknowledged the “unseasonal summer weather and recovery from competitors” had made it a tricky few months for the supermarket chain, but added that good sales momentum and a stronger August had helped it to recover.
Shares increased by almost four per cent as analysts said Tesco looked to be on course for full-year profits of more than £2.75billion.
Tesco has recently been in the spotlight for all the wrong reasons, with the Competition Commission currently investigating into the £95billion grocery sector after the Office of Fair Trading (OFT) found evidence to suggest some firms were preventing rivals from opening new stores by using “land banks” .
In addition, Tesco, along with Asda, Sainsbury’s and Morrisons, were identified and reported by the OFT two weeks ago over allegations of fixed dairy prices.
Tesco currently has a huge 30 per cent share of the British grocery market thanks to its 1500 UK stores and online business, which combined saw overall domestic sales reach £18.3billion – an increase of more than five per cent from last year.
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