Tesco expects profit over £1bn

Tesco will turn the screw on its rivals today by revealing it made profits of more than £1bn (€1.47bn) in just six months of business.

City analysts expect a figure of £1.13 bn (€1.67bn) for the half year, an increase of 10.7% on a year earlier after sales lifted 12% to £18.4bn (€27.2bn).

Chief executive Sir Terry Leahy is also expected to announce thousands of new jobs as the chain steps up its expansion, with more store openings and moves into new, non-food product areas such as computer software.

Tesco’s latest profits haul – keeping it on course for full-year profits of £2.5bn (€3.7bn)– will anger environmental and consumer groups who have accused the chain of killing off competition and driving out independent traders.

Friends of the Earth’s supermarket campaigner Vicki Hird said: “Tesco’s booming profits are rooted in rock-bottom prices to farmers and a wholesale takeover of the high street.

“Ministers and competition authorities must put the brakes on the Tesco juggernaut and take action to protect our small shops, farmers and the environment.”

The profits uplift comes despite rising fuel costs and evidence of increased competition from Morrisons and Sainsbury’s.