Megagrocer Tesco said it saw a 23.5 percent slump in its profits for the first half of its financial year to the end of August.
Its non-UK businesses saw bigger profit drops – European profits fell by over two thirds it said.
Profit margins fell from 5.4 percent to 4.9 percent but the sheer size of Tesco saw a £1.6 billion profit.
Philip Clarke, Tesco’s CEO, claimed that performance in the UK was stronger in the half, especially in its online food sales business.
He said: “The challenging retail environment in Europe has continued to affect the performance and profitability of our business there.”
Tesco recently released its low price Hudl tablet (pictured).
