UK: Tesco shares dip after mixed H1
- Underlying H1 pre-tax profits up 8.6%
- Turnover climbs 9.3%
- LFL sales growth in UK slows
Shares in Tesco, the UK's largest retailer, dipped in early trading this morning (6 October) after the company booked rising half-year profits - but slowing like-for-like sales growth.
Sales rose 9.3% to GBP27.8bn; like-for-like sales were up 3.7%. However, Tesco's like-for-like sales growth in the second quarter reached 3.1% - against growth of 4.3% in the first quarter of the year.
Nevertheless, Tesco said its like-for-like sales in the UK had "converged" with the rest of the industry.
Meanwhile, CEO Sir Terry Leahy insisted Tesco was "well placed for the global recovery".
"Last year's acquisitions - Homever in Korea and Tesco Bank - are already making good contributions to sales and profits," Sir Terry said.
"In [our] international [operations], the markets with the greatest growth potential for the long-term have been some of the hardest hit in the short-term but we have nevertheless delivered a good performance against strong headwinds. Our UK business is delivering solid growth and improving volumes."
Tesco shares were down 0.7% at 388.8p at 08:51 BST this morning.
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