During the presentation of the half-year figures, Tesco announced that it is on course to achieve this year’s profit target.
Total sales of the group increased by one per cent on a like-for-like basis. For the British domestic market, this figure amounted to 0.6 per cent. The turnover of the group amounted to 24.4 billion pounds (27.8 billion euro). “We have achieved significant progress during the first half year, with more turnover on a like-for-like basis,” CEO Dave Lewis concluded.
The deficit amounts to 4.4 billion pounds (5 billion euro). Compared to the same period a year previously, the debt decreased by 49.3 per cent. Since the end of the last financial year, Tesco managed to pay off 14.8 per cent of the debt. Tesco is still being haunted by the consequences of the accounting scandal that came out in recent years. In addition, there are lawsuits against disgruntled shareholders who claim to have been adversely affected by the retailer in 2014.
“In an uncertain market we made progress to achieve targets we set ourselves two years ago,” according to the CEO. Tesco has become more competitive in its supply. “Prices are more than six per cent lower than two years ago, and our supply has become more attractive. Our new labels performed better than expected.”