Tesco profits top forecast – Fishupdate.com

Tesco profits top forecast Published:  04 October, 2006

TESCO topped analysts’ average forecast with a 12.5 percent rise in underlying first-half profit on Tuesday.

TESCO topped analysts’ average forecast with a 12.5 percent rise in underlying first-half profit on Tuesday and said its plans to expand in non-food and the United States were on track, Reuters has reported.

Britain’s biggest supermarket group said profit before tax, excluding IAS 32 and IAS 39 accounting measures, was 1.15 billion pounds in the 26 weeks to August 26, versus the comparable 26-week period the year before.

Analysts average forecast in a Reuters poll was 1.122 billion pounds, within a range of 1.06 billion to 1.15 billion.

Sales including VAT (value added tax) were up 12.7 percent to 22.7 billion pounds. Excluding VAT they were up 12.6 percent to 20.7 billion pounds.

Core UK sales were up 10.2 percent, while UK non-food sales were up 12.6 percent, international sales up 21.3 percent and tesco.com sales up 28.7 percent.

“With the recent launch of Tesco Direct and the preparations for our entry into the United States in 2007, we are investing into new markets to drive the long term growth of the business,” Chief Executive Terry Leahy said in a statement.

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