British retail giant Tesco on Wednesday reported a 6.9 percent drop in group annual pre-tax profits to 3.05 billion pounds (5.12 billion U.S. dollars). It is the second consecutive annual drop in profits.
Tesco said that the trading profit fell 6 percent year-on-year to 3.31 billion pounds. Besides, sales remained flat at 7.09 billion pounds.
"Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before. We are determined to lead the industry in this period of change," said Philip Clarke, chief executive of Tesco.
"We are now accelerating our growth in new channels and investing in sharper prices, improved quality, stronger ranges and better service," he added.
Tesco announced a partnership with China Resources Enterprise, giving Tesco a 20 percent ownership stake in the largest food retail business in China.
The British multinational grocery and general merchandise retailer has over 530,000 staff in 12 markets. Tesco entered the Chinese market in 2004.
Tesco's performance in international markets has been hit in recent yeas. It announced its exit from the Japanese and U.S. market in 2012 and 2013 respectively.