Tesco Swings to Loss on Korea Costs

LONDON—Tesco PLC said Wednesday that it fell to an interim net loss as Britain's largest retailer incurred costs related to the sale of its Korean business but said it is regaining its competitive position in its home market.

The net loss for the 26 weeks ended Aug. 29 was £ 365 million ($556.39 million), compared with the £ 6 million profit a year earlier.

Revenue, excluding value added taxes and fuel, fell to £ 23.9 billion from £ 24.3 billion.

But Tesco said its operating profit—which strips out large one-time charges—was £ 354 million compared with £ 216 million.

The company said it isn't paying an interim dividend and said its full year expectations are unchanged.

"In the U.K., we continue to improve all aspects of our offer for customers, resulting in volume growth which is allowing us to create a virtuous circle of investment," said Chief Executive Dave Lewis.

"Our transformation program in Europe has accelerated growth and reduced operating expenses, and in Asia, we have gained market share in challenging economic conditions," he added.

Write to Saabira Chaudhuri at [e-mail] and Rory Gallivan at [e-mail]

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October 07, 2015 03:05 ET (07:05 GMT)

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