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Supermarket giant Tesco has reported higher first-half profits, despite the poor UK summer weather hitting sales.

In a statement the world's third-largest retailer reported a 14.3 per cent rise in underlying profits before tax, which climbed to £1.32 million in the 26 weeks to August 25th.

UK like-for-like sales excluding petrol were up 3.5 per cent over the six-month period, exceeding forecasts despite a slowdown from the first quarter.

During the second quarter UK like-for-like sales grew by just 2.4 per cent excluding fuel, with Tesco revealing that sales slowed in June and July as a result of the "unseasonable cold, wet weather".

However like-for-like sales picked up in August, growing to around five per cent as Tesco customers took advantage of better weather and price cuts introduced by the retailer.

Tesco's international sales also grew strongly, climbing by 23.1 per cent over the first half at constant exchange rates.

Commenting on the results Tesco chief executive Terry Leahy said: "Tesco has delivered strong first-half progress across the group, despite the challenges posed by the start-up investment required to establish our new US and Direct businesses and by the effects of poor summer weather in the UK."

The retailer says it has absorbed start-up costs totalling £32 million on its Tesco Direct online sales service and on establishing operations in the US.

In just a few weeks the supermarket group will open new stores along America's west coast, trading under the Fresh & Easy brand.

Tesco says that it is on track to create over 25,000 new jobs worldwide this year.