Bri­tish su­per­mar­ket Tesco slides into first-half net loss

The China Post - - WORLD BUSINESS -

Bri­tain’s big­gest re­tailer, su­per­mar­ket group Tesco, said Wed­nes­day it had fallen into a net loss dur­ing its first half, partly on costs linked to an ac­count­ing scan­dal.

Losses af­ter tax stood at £365 mil­lion (US$557 mil­lion) in the six months to the end of Au­gust, com­pared with a net profit of £6 mil­lion dur­ing the cor­re­spond­ing pe­riod a year ear­lier, Tesco said in an earn­ings state­ment.

“We have de­liv­ered an un­prece­dented level of change in our busi­ness over the last 12 months and it is work­ing,” chief ex­ec­u­tive Dave Lewis said.

Tesco is seek­ing to over­haul its busi­ness af­ter re­port­ing the big­gest an­nual loss in its near 100-year history of £5.74 bil­lion for the year to Fe­bru­ary.

The com­pany is also fac­ing a fraud probe af­ter a huge ac­count­ing scan­dal that saw it over­state prof­its by £263 mil­lion ow­ing to er­rors stretch­ing back to be­fore 2013.

Tesco has ad­di­tion­ally been hit by fall­ing sales on fierce com­pe­ti­tion from low-price su­per­mar­ket ri­vals Aldi and Lidl, restruc­tur­ing charges and write­downs to its prop­erty port­fo­lio.

The Bri­tish group mean­while last month an­nounced an agree­ment to sell South Korean unit Home­plus to a con­sor­tium led by pri­vate eq­uity firm MBK Part­ners for more than £4.0 bil­lion.

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