Half-year earnings for Tesco UK and Ireland have dropped 70% compared to the same time last year.
Overall Group operating profit dropped 55.1% compared to the corresponding period last year.
Like-for-like sales in the UK and Ireland were down 1.3%, with overall Group sales down 0.8%.
Dave Lewis, Chief Executive of Tesco said that it has delivered an unprecedented level of change in the business over the last 12 months and it is working.
“The first half results show sustained improvement across a broad range of key indicators.
“In the UK, we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment.
“Our transformation programme in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions,” he said.
Lewis also said that Tesco has concluded its portfolio review with the sale of Homeplus, our business in Korea, enabling Tesco to take a significant step forward on its priority of strengthening the balance sheet.
“Further progress will be driven by continuing to increase the level of cash generated from our retained assets,” he said.
According to Tesco, the market remains challenging. In the second half, Tesco said that it will continue to benefit from initiatives already undertaken to improve its competitive position and reduce its cost base, leaving its full year expectations unchanged.
Tescos focus remains on doing the right thing for customers and it is prepared to invest further if it sees additional opportunity or need to enhance the long-term competitive position of the business.