Tesco in the Czech Republic has shown losses of 3.9 billion koruna (€144 million) for the financial year 2014/15. 

The losses are despite the company increasing its sales by 1.1% to 41.7 billion koruna (€1.54 billion) over the period, according to its annual report.

The reason for the particularly bad results according to company spokesman Vaclav Koulolicek, was down to extraordinary depreciation of property. He added that the company is in a ‘transformation period’ and has increased its sales in all of its Central European markets.

This include markets in; Poland, Hungary, Slovakia and Czech Republic.

Tesco entered the Czech Republic in 1996. It employs 14,000 people across its 203 stores in the country. Speculation has been rife about the future of the retail giant in Central European markets for some time, as it struggles to get a grip in its core market in the UK, where in recent years it has been trying to reinvent itself.