Tesco’s interim results for the first half of 2015 are more disappointing than ever. The underlying profits were £354m, 55% lower than in the same period a year before. Tesco has confirmed it will cost about £500m to meet the government's proposed National Living Wage rate.
Tesco has recently sold its Homeplus store in South Korea and managed to reduce its debt by £4.2bn. The company is planning further rounds of price cuts in an effort to reconstruct its finances.
The supermarket is still under a criminal investigation by the Serious Fraud Office (SFO) after it admitted overstating its profits by £326m in 2014, but chief executive, Dave Lewis, still seems confident.
“If I compare to the second half of last year, the first half of this year feels like we've made some progress," says Lewis, who is now focusing on increasing the stuff and reducing the prices.
The results came a week after rival Sainsburys published its better-than-expected full-year profits; but Tesco has more hurdles to overcome in terms of competition from cheaper rivals, too.