UK retail giant Tesco has attributed a forecast-beating rise in first-half (H1) profit in part to sales growth from its overseas markets, including Asia.
The world's third largest retailer today (Tuesday) announced an H1 underlying profit of £1.79bn (€2.1bn, US$2.8bn) versus its forecast €1.7bn, year-on-year growth of 14 per cent.
Sales growth in Asia (27.7 per cent over the prior year period), productivity gains, property deals and lower interest costs offset a sluggish performance in the domestic UK market in the 26 weeks to August 28, Tesco revealed in a press release.
Overall year-on-year sales growth stood at 8.3 per cent, up to £32.9bn (€38bn, US$52bn), with UK sales making up £21.9bn (€25bn, US$34.6bn) of the total.
The retailer said its sales performance in Asia was helped by stronger trends across the region, with particularly pleasing growth in Korea and Thailand. In Europe, Tesco sales grew by 5.8 per cent.
The group also expects its loss-making US business, Fresh & Easy, to reach profitability in the fiscal year 2013.
Fresh & Easy first-half sales were up by 47 per cent, Tesco said, adding that it would accelerate store openings next year.
Commenting on the results, Tesco chief executive Terry Leahy: 'The global economic headwinds of the last two years are being replaced by the tailwinds of recovery in most of our markets, and this is helping our international businesses to resume strong sales and profit momentum.
'Our important Asian markets in particular are emerging strongly from recession, and we are now benefiting from the substantial investment we continued to commit to the region during the downturn,' he added.
Tesco operates over 4,800 stores in 14 countries.
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