British group Tesco has outperformed expectations in the first half of its fiscal year. Lower prices for more than 500 products meant its volumes sold were higher than a year ago.
Turnover still on the slide in home territory
The group's total turnover reached 23.94 billion pounds (32.5 billion euro), down 1.9 % compared to last year, but at level exchange rates, it would have been pretty much level. The group's like-for-like turnover dropped 0.8 %, but grew 1 % outside of the United Kingdom. Like-for-like turnover did drop 1.3 % in its home territory.
Its operational profit dropped 54.6 % to 354 million pounds (480 million euro), mainly because its British profit got hammered 69.4 % (from 543 million pounds last year to 166 million pounds - 225 million euro - now). Analysts had predicted a 130.5 million pounds (180 million euro) profit, which meant it has beaten those expectations.
Only last month, Tesco agreed to sell Homeplus' Korean division for 4.2 billion pounds (5.8 billion euro), all part of the company's strategy to lower its debt a lot.