Profit slumps but Tesco turnaround on track

British-headquartered supermarket giant, Tesco, says its profits plunged 70 per cent in the in the half year to August 29.

But importantly, sales in its home market fell just 1.1 per cent, a significant improvement on the 4.6 per cent fall a year earlier.

The fierce pricing war underway with discounters Aldi and Lidl saw profits fall from £543 million to £166 million in the first half. Overall group profits dropped 55 per cent to £354 million.

Earlier this year Tesco reported the worst results in its history, with a record statutory pre-tax loss of £6.4 billion for the year to February, reflecting largely book value adjustments as new CEO Dave Lewis set about restructuring the debt laden company.

Said Lewis at the announcement of the half year results overnight: “Every important part of Tesco has been or is being transformed operationally, culturally or financially.

“We have delivered an unprecedented level of change in our business over the last 12 months and it is working. The first half results show sustained improvement across a broad range of key indicators.”

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