Tesco announces rise in profits
October 6, 2009
British retailer Tesco has announced an 8.6 percent rise in profits for the first half of the year. Sir Terry Leahy the company’s chief executive said that the results put Tesco in a good position to take advantage of global economic recovery. He also said that the firm’s strong financial position meant that it could continue to invest in new businesses and more space. Tesco made a £1.57 billion pre-tax profit.
Tesco is the third largest retailer in the world and has 4,300 shops around the globe. Reports say that the supermarket chain had been lagging behind its main rivals in the U.K. at the start of the year because the recession had been badly felt across its non food-based ventures. However it seems to have caught up recently and Sir Terry has said that this is in part due to the August relaunch of its Clubcard customer loyalty scheme.
Tesco’s profits were held back by a raise in the company’s interest payments. It increased its debt last year in order to buy out a business partner and make an acquisition in South Korea. The company now aims to reduce its debts to £8.5 billion by the end of the financial year and continue to reduce them throughout the coming year.
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