Tesco has 33% fall in profit

The British Tesco's net profit, one of the largest supermarket chain in the world, fell 33.6 percent in the fiscal half-year ended August 24, 2013. The result was 1.235 billion pounds ($ 2 billion) in the same period last year to 820 million pounds ($ 1.33 billion) this year.
In a statement on the balance sheet, Philip Clarke, Tesco's President, said the company must still start to get return on investments made in the Mainland. "The challenging environment in Europe continued to affect the performance and profitability of our business. The investments we have made to improve our offer to customers in the region are already starting to take effect and we hope a second half with stronger result ".
Tesco's net revenue in the half rose 1.9 percent in the period, to 31.92 billion pounds ($ 51,87 billion). But the cost of products sold rose more, 2.4%.
Gross profit shrank by 1.6%, administrative expenses increased by 14.4% and the operating profit fell 21.8 percent to 1.567 billion pounds. The line on the profit arising from continuing operations shrank 22.7% and the loss resulting from discontinued operations increased 34%.
Tesco announced yesterday a joint venture with China Resources Enterprise to strengthen operation in the Asian country, where he has 134 stores, a market more profitable than those in Europe.