Tesco has announced that overall group sales excluding petrol grew 6.7 per cent during the opening quarter of the year (7.8 per cent including petrol), with like-for-like sales up 1.6 per cent.
This rise was driven by international sales growth, with an 'improving overall pattern of like-for-like increases and market share' a feature of overseas markets.
'Tesco has made a good start to the new financial year, despite consumersentiment in many of our key markets remaining subdued,' said Philip Clarke, chief executive at Tesco. 'The overall performance of our businesses in Asia and Europe has again been pleasing, led by further strong growth in Thailand and across our central European region.
In Europe, sales grew 9.5 per cent at both actual and constant exchange rates, with 'pleasing' growth in central Europe, particularly in the Czech Republic and Slovakia, as well as in Turkey.
Asian markets enjoyed a similarly encouraging quarter, with 8.6 per cent sales growth, supported by new store openings across the region, with Thailand a star performer.
Back in the UK, the group saw sales hit by a continuing cautious consumer environment, falling by 0.1 per cent excluding petrol and VAT, although this remained an improvement on the same period last year when sales fell 0.7 per cent.
In the US, the group said that it was 'encouraged' by the momentum in its Fresh & Easy business, with sales up 21.9 per cent and like-for-like sales growth of 11.1 per cent.
'Uncertainties remain but with early, encouraging signs of better performance emerging in both the UK and the US, I am confident that this start will provide the platform for another year of growth and rising return on capital employed for Tesco,' Clarke added.
The CEO said that the group was making progress with its strategy, and Tesco confirmed that it was performing in-line with expectations and the yearly outlook remained unchanged.
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