Tesco has said the challenging retail environment in Europe continues to affect its performance, as it reported a 23.5% drop in group pre-tax profits to £1.39 billion in the six months to August.
Chief executive Philip Clarke told ITV News: "There are always bumps in the road and the Eurozone is one of those and it's been an extraordinary impact since 2008."
But he added: "We feel we've got every opportunity to grow and make progress".
Tesco has revealed that its trading profits in its UK business rose 1.5% to £1.13 billion, with like-for-like sales excluding petrol remaining flat in its second quarter after falling 1% in the previous three months.
Despite improved trading in the UK, the retailer's first half group pre-tax profits of £1.39 billion, are down 23.5%.
– Tesco chief executive, Philip Clarke
The challenging retail environment in Europe has continued to affect the performance and profitability of our businesses there. The investments we have made to improve our offer for customers in the region are already starting to take effect and we expect a stronger second half as a result.
– Sainsbury's chief executive Justin King
We have delivered strong sales over the quarter, continuing to outperform the market in what remains a tough retail environment.
We are the only major supermarket to be growing market share. This comes during a quarter in which we also lapped some of our strongest performance during the Paralympic Games last year.
Supermarket giant Tesco has reported a 23.5% drop in group pre-tax profits to £1.39 billion in the six months to August 24.
Supermarket chain Sainsbury's like-for-like sales are up 2.1% for the second quarter of the year to 28 September 2013, according to its latest trading statement.
Total sales for second quarter were up 5.0 per cent.
Total sales for the first half up 4.4 per cent (4.0 per cent excluding fuel) and like-for-like sales up 1.5 per cent (1.4 per cent excluding fuel).