Financial headlines:
- Group sales up 1.4% to £36.0bn (up 3.2% at constant rates); Group sales exc. petrol up 1.6% (up 3.7% at constant rates)
- Statutory profit before tax down (11.6)% to £1.7bn; Underlying profit before tax down (8.5)% to £1.8bn
- Group trading profit of £1.6bn, down (10.5)% - UK down (12.4)% to £1.1bn; International down (17.1)% to £0.4bn; Tesco Bank up 114% to £94m
- Underlying diluted EPS reduction of (7.9)%
- Interim dividend per share maintained at 4.63p
- Group capital expenditure brought down from £2.1bn to £1.6bn; on track for a full year reduction to c.£3.2bn
Philip Clarke - Chief Executive
"We continue to act decisively to tackle challenges and seize opportunities across the Group. In April, I set out our plans to 'Build a Better Tesco' in the UK. We have been hard at work and I am encouraged by our customers' initial responses to the changes we have made - but there is much more to be done. I am pleased that the team is in place, highly focused and energised, and I want to thank them for everything they have done.
"The external environment continues to present challenges all over the world. Whilst our businesses in Asia and Europe have continued to do a great job for customers, our financial performance there reflects the tough economic backdrop and particularly the regulatory changes in South Korea. That we have gained or held market share in the majority of markets is a testimony to the skill of our teams across the Group.
"We have made some important strategic changes which have fundamentally altered our approach to capital allocation. First, significantly reducing space growth in the UK and focusing on improving the performance of our existing stores - and second, investing in online to enable Tesco to take a leadership role in the digital revolution: playing our part in shaping the future of retailing.
"It is in serving the changing needs of customers, as Tesco has done over many years, that we will create more value for shareholders."
