Terry Leahy, Chief Executive, comments:
“By improving the shopping experience for customers in our businesses around the world, we have been able to deliver another good performance in a more challenging year. Looking forward, the accumulating effects of rising oil-related costs, both on consumer confidence and on our business, are a cause for concern, but we remain confident that we will make further progress in the second half.”
GROUP HIGHLIGHTS
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Sales up 14.1% to £18.8bn, up 12.4% at constant exchange rates
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Pre-tax profit up 18.7% to £908m
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Profit growth of 14.4% to £940m using pre-IFRS* underlying profit definition** (last year £822m)
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Diluted earnings per share up 15.7% to 8.10p
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Interim dividend per share up 10.5% to 2.53p
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On track to create a further 7,500 new jobs in the UK and 9,500 worldwide in the second half
UK
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Sales up 11.1% to £14.6bn
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Operating profit up 19.2% to £801m
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Like-for-like sales up 8.2%, up 6.7% excluding petrol
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Deflation of 2% (excluding petrol) as we cut prices again for customers
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One million more customers join Clubcard in its 10th anniversary year
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Second quarter like-for-like-sales up 7.6%, up 6.6% excluding petrol
INTERNATIONAL
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International now 54% of group selling space, making a significant contribution to group growth
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Sales up 25.6% to £4.2bn, up 17.3% at constant exchange rates
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Operating profit up 23.5% to £163m, up 16.0% at constant rates
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Positive customer response to strategic investment in Central Europe
NON-FOOD
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UK Non-food sales up 13% to £2.8bn, including growth of 17% in Home Entertainment, 15% in Clothing and 33% in Seasonal
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Extended Extra stores at Bar Hill and Slough feature wider non-food ranges
RETAILING SERVICES
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Tesco Personal Finance (TPF) customer accounts grow to over 5m. TPF delivers £50m profit - Tesco share is £25m.
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Tesco.com sales up 31% to £401m and profit up 37% to £21m
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Tesco Mobile customer numbers up to 750,000
* From the beginning of 2005/6 Tesco has adopted International Financial Reporting Standards (IFRS) accounting policies, having previously reported its financial results under UK GAAP. This change is a requirement for all listed groups in the European Union.
** Underlying pre-tax profit excluded net profit or loss on disposal of fixed assets, integration costs and goodwill amortisation.
