Tesco unveils strong first half profits for the 2009/10 financial year.

Supermarket giant Tesco has reported a strong first six months of the 2009/10 financial year, and its Chief Executive says it is “well-placed for the global recovery”.

The supermarket unveiled strong group sales of £30.4 billion, showing an 8.3% growth compared to the first half of 2008/9, and group profit before tax of £1.4 billion, up 1.5% for the 26 weeks to 29 August 2009.

Internationally, Tesco continues to reap the success of its investment across most of its markets, despite the ongoing recession over the past 12 months. Sales in Asia have grown by 38.3% to nearly £4.4bn; European sales have increased to almost £4.8bn, a 0.9% growth.

Sales in the US have also flourished with growth of 115.4% to £168 million. Tesco said it was delighted with the positive progress that was being made with regards to its US offering, Fresh & Easy, despite the current economic uncertainty in its key locations – California, Nevada and Arizona. It has been taking customer feedback on board and adapting its ranges resulting in resounding success.  

However, positive sales growth has not equalled positive trading profit, particularly in Europe and the US where profit has taken a hit in both regions.

Terry Leahy, Chief Executive, commented on the results: “Tesco’s core strengths are even more important as we tackle successfully the challenges of recession.

“Our focus on the customers, the consistency of our strategy, an efficient business model, strong local management teams, and a spirit of innovation and knowledge-sharing, have enabled us to improve the shopping trip for customers, whilst at the same time delivering a robust financial performance.”

In its interim results, Tesco also announced the renaming of Tesco Personal Finance to Tesco Bank, as it looks to reaffirm it position, and long-term objective of creating a full-service retail bank for customers.