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Low food price inflation has kept UK sales growth "modest" the firm says
Supermarket giant Tesco has reported half-year pre-tax profits of £1.6bn.
The figure, for the six months to 28 August, was up 12.5% on the same period a year earlier.
The company said UK sales growth was "modest" - citing low food price inflation and higher fuel costs meaning customers spent more at the pump instead of in store.
But chief executive Sir Terry Leahy added the firm was experiencing "the tailwinds of recovery".
Tesco, the world's third largest retailer, said the firm's Asian markets were "emerging strongly" from recession, with profits rising 30%.
In the UK, economic recovery was slow, Sir Terry said, but added it had coped well with "subdued demand".
In the UK, sales grew by 8.3% to £32.9bn. It said that when exchange rate fluctuations were stripped out, sales rose by 6.4%, or 5.5% without fuel sales.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Low food price inflation has kept UK sales growth "modest" the firm says Supermarket giant Tesco has reported half-year pre-tax profits of £1.6bn.
The figure, for the six months to 28 August, was up 12.5% on the same period a year earlier.
The company said UK sales growth was "modest" - citing low food price inflation and higher fuel costs meaning customers spent more at the pump instead of in store.
But chief executive Sir Terry Leahy added the firm was experiencing "the tailwinds of recovery".
Tesco, the world's third largest retailer, said the firm's Asian markets were "emerging strongly" from recession, with profits rising 30%.
In the UK, economic recovery was slow, Sir Terry said, but added it had coped well with "subdued demand".
In the UK, sales grew by 8.3% to £32.9bn. It said that when exchange rate fluctuations were stripped out, sales rose by 6.4%, or 5.5% without fuel sales.
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.