Tesco Profits Remain Unchanged In The First Half Of Fiscal Year.

Tesco chief executive Dave Lewis is in danger. Since taking office last September, he has taken comprehensive reform measures to boost her performance.

It includes closing 43 unprofitable stores in the UK, shelving 49 super stores, building headquarters, laying off staff, adjusting the structure, changing the way of supplier cooperation, and reducing the price of the most popular 380 brands in the UK market (average decline of 26%).

In addition, there are a series of measures to reduce expenditure, including reducing daily expenses, simplifying store management and increasing working time flexibility.

These measures, while generating a one-time expenditure of 300 million pounds (2 billion 822 million yuan), are expected to save 250 million pounds (about 2 billion 352 million yuan) per year for Tesco.

Gradually fade out of China, will sell 131 stores in China to Huarun after starting business, in early September this year, in order to reduce debt, Tesco PLC sold 4 billion 240 million of the group's Homeplus business in Korea.

Homeplus is renamed from Tesco's store in Korea and is one of the top three supermarkets in Korea.

According to sources, the group may further withdraw from the Middle East and European markets.

Since last year's performance has hit the company's 94 year history of the biggest loss, Tesco's psychological tolerance for losses has become increasingly strong.

In the first half of August 29th, British retail giant Tesco's operating profit plummeted 54.6%, from 799 million pounds in the same period last year to 354 million pounds.

However, in the new CEO

It seems that, considering that the last Tesco PLC has fallen to the bottom of the company since its establishment, it has seen some improvement in the first half of this year.

Tesco PLC released the first half fiscal year report, excluding value-added tax and fuel factors, group revenue fell 1.65% to 23 billion 900 million pounds, operating profit of 354 million pounds, 54.6% lower than last year's 799 million pounds; pre tax profit 79 million pounds, a loss of 19 million pounds in the same period last year.

In the first half of fiscal year, Tesco PLC realized 23 billion 940 million pounds in addition to VAT and fuel costs, down 1.9% from 24 billion 266 million in the previous year, and 0.3% in the fixed exchange rate.

The UK market fell 1% year-on-year, while the second quarter improved compared with the first quarter, while the international market had a 1% increase over sales. The group said the two quarter European and Asian markets were positive.

As of August 29th, there were 6605 stores in Tesco, including 3583 in the United Kingdom and Ireland, 1184 in Europe and 1838 in Asia.

A total of 50 new stores, 88 stores, including 33 new stores in Asia, closing 8.

Due to the accounting scandal, which has increased the revenue expectations and the hard and huge debts of the international market environment, it was affected by the one-time cost of 7 billion pounds, including the fixed assets impairment of 4 billion pounds. Tesco's pre tax losses as high as 6 billion 376 million in the 2014-2015 fiscal year ended February 28th, and the loss amount set a record in the 94 years since its establishment.

In the first half of the fiscal year, Tesco was removed from VAT and fuel factors.

The year-on-year sales fell by 1.7%.

In the quarterly view, the first quarter decreased by 3.4%, and the second quarter increased by 0.1%.

Financial reports show that the group's pformation plan in Europe has accelerated and has reduced operating costs, but the market share of the group in Asia has faced a challenging economic environment.

Last May 29th, Huarun announced that the joint venture agreement has been approved by the Chinese government and will form a diversified retail joint venture. Tesco's China business, including Tesco, will be wholly incorporated into the joint venture company.

Subsequently, the three quarter results of Huarun venture in 2014 showed that the loss of Tesco stores of British retailers affected by last year's acquisition affected Huarun's loss of 700 million yuan in retail business.

Fourth quarter last year

After the integration, the scale of losses continued to expand.

Although Huarun has made the integration of the plan within three years, however, the integration path of the "Long March", called the "Long March" by Huarun Wanjia, is not smooth, successively in Guangdong and Beijing and other cities and other cities of Tesco employees to stop work boycott.

In April 8th of this year, Huarun announced that it would sell all business other than beer to its parent company Huarun group at HK $28 billion.

For the reasons for the restructuring, Huarun venture chairman Chen Ron Staw Chen, the company's non beer business faced with market challenges and business integration risks, has negatively affected the company's financial performance.

According to previous earnings reports, Huarun business turnover increased 15.4% to HK $168 billion 900 million last year, but the loss was HK $794 million.

The reason for dragging China's losses is retail business, including the Tesco China business which acquired huge losses last year.