The largest British retailer Tesco has reported growth in operating profits and sales for the first time in 7 years. Annual sales rose to 49.9 billion pounds, which is 4.3% more than a year earlier.
Adjusted operating profit jumped by 29.9% - to 1.28 billion pounds ($1.6 billion). Analysts, polled by Bloomberg, predicted 1.26 billion pounds.
Pre-tax profits decreased from 202 million pounds to 145 million pounds due to write-offs of 235 million pounds related to the payment of a fine for overstating profits in 2014.
The cost of a standard grocery basket in Tesco has decreased by 6% since September 2014, but at the same time the company has reduced the number of promotions and sales by almost a third.