Tesco, the UK's largest supermarket, experienced a slowdown in sales growth during the first half of this year. Like-for-like sales growth reached 0.9 per cent in the second quarter, a decrease from the one per cent growth recorded in the first quarter.
Chief executive Ken Murphy stated that the supermarket is focused on providing customers with value for money amidst an "uncertain external backdrop." He also mentioned fears that the Iran war could lead to an increase in food prices.
Despite the sales growth slowdown, Tesco's pre-tax profit for the first half of this year rose by 11.5 per cent to £1.5bn. The supermarket's revenue for the same period was £37.4m, surpassing analysts' expectations of £37.2m.
Tesco is reportedly considering selling its operations in Hungary, the Czech Republic, and Slovakia. However, Mr Murphy did not comment on these rumours, instead highlighting a 38 per cent increase in operating profit for its central Europe arm, reaching £63m.