Supermarket giant Tesco has reported a 23.5 per cent drop in profits during the first half of its financial year.
The firm has confirmed that profits have fallen globally, with a 67 per cent drop in Europe to £55m and Asian profits, excluding China, dropping 7.4 per cent to £314m.
But despite the international slump, Tesco said that UK trading profits had risen 1.5 per cent to £1.13bn. However, its UK like for like sales fell by 0.5 per cent.
The BBC reports that Tesco’s pre-tax profits in the six months to August 24th were £1.39bn, which the firm has blamed on the challenging retail environment particularly in the EU.
Meanwhile, the supermarket chain’s rival Sainsbury’s has reported a two per cent rise in like for like sales during the second quarter of its financial year.
The firm’s increase makes it the only major supermarket to increase its market share, according to Sainsbury’s chief executive, Justin King.