LONDON (AFP) –
The country's biggest retailer Tesco said Tuesday that net profits rose 1.3 percent in the first half of its financial year, boosted by acquisitions, and added it was well placed for economic recovery.
Profits after tax advanced to 1.027 billion pounds in the six months to August 29, which compared with 1.014 billion pound in the same period last year, Tesco said in a statement.
Pre-tax profits before exceptional items jumped 8.6 percent to 1.57 billion pounds, which was ahead of market expectations.
Worldwide group revenues meanwhile swelled by 9.3 percent to 27.8 billion pounds in the reporting period, during which Tesco created 6,500 jobs despite the global economic downturn.
In recession-struck Britain, Tesco sales excluding petrol increased by 2.1 percent.
"Our UK business is delivering solid growth and improving volumes," said Tesco chief executive Terry Leahy in the earnings release.
"This progress across the group, combined with our strong financial position funding continued investment in new space and new businesses, means we're well-placed for the global recovery."
He added: "Last year's acquisitions -- Homever in Korea and Tesco Bank -- are already making good contributions to sales and profits.
"In International, the markets with the greatest growth potential for the long-term have been some of the hardest hit in the short-term but we have nevertheless delivered a good performance against strong headwinds."
Tesco is the world's third-biggest retailer after US giant Wal-Mart and French group Carrefour.
The group also announced on Tuesday it has relaunched its financial services unit, Tesco Personal Finance, as Tesco Bank.
Tesco Bank, which provides credit cards, insurance policies, small loans and savings accounts, has almost six million customers in Britain.
The supermarket group agreed to buy Royal Bank of Scotland's 50-percent share in their joint venture, Tesco Personal Finance, for 950 million pounds last year.
The supermarket chain agreed to buy South Korea's debt-stricken discount retail chain Homever for 1.86 billion dollars last year.
