LONDON: Britain’s biggest retailer Tesco said on Wednesday it would pay a dividend for the first time since the 2014-15 year when it was mired in crisis, after its first-half profits jumped 27 percent.
The firm also reported a seventh straight quarter of underlying sales growth in its home market, successfully navigating an inflationary trading environment.
Tesco made operating profit before one off items of £759 million (SR 3.77 billion) for the six months to August 26.
That compares with £596 million in the same period last year and analyst forecasts of about £700 million.
Tesco, which in January agreed to buy wholesaler Booker for £3.7 billion, said UK like-for-like sales rose 2.1 percent in the second quarter.
An interim dividend of 1 pence will be paid which “reflects improved performance and board confidence.”
“Sales are up, profits are up, cash generation continues to strengthen and net debt levels are less than half what they were when we started our turnaround three years ago,” Chief Executive Dave Lewis said.
The resumption of the dividend is the strongest sign yet that the British high street giant has returned to a stronger footing, after changing shopping habits, the rise of German discounters Aldi and Lidl and a 2014 accounting scandal all combined to hammer the business.
After stabilizing the company, Lewis has got it growing again with a focus on more competitive prices, new and streamlined product ranges, better customer service and improved supplier relationships.
However, shares in Tesco closed Tuesday at 190 pence, lower than the 230 pence when Lewis joined in September 2014, reflecting concerns over the merits of the Booker deal as well as Tesco’s pension deficit and debt levels.
The group said it had concluded a triennial pension review and that its annual contributions would increase by £15 million to £285 million from April 2018.
Tesco to pay first dividend since 2014 accounting scandal
Tesco to pay first dividend since 2014 accounting scandal
Saudi POS spending opens 2026 with a 31% surge: SAMA
RIYADH: Saudi Arabia’s total point-of-sale transactions reached SR17 billion ($4.5 billion) in the week ending Jan. 3, with all sectors recording positive weekly growth.
According to the latest data from the Saudi Central Bank, the total POS value represented a 30.6 percent week-on-week increase, while the number of transactions rose 15.7 percent to 255.36 million.
Spending on freight transport, postal and courier services recorded the sharpest increase, surging 110.9 percent to SR74.22 million, followed by education, which rose 66.4 percent to SR235.51 million.
Expenditure on personal care increased by 31.7 percent, while spending on books and stationery rose 36 percent. Jewelry outlays climbed 48 percent to SR544.12 million.
Further gains were recorded across other categories. Spending at pharmacies on medical supplies rose 42.1 percent to SR284.81 million, while expenditure on medical services increased 20.8 percent to SR556.27 million.
The food and beverages sector saw outlays rise 41.4 percent to SR2.7 billion, accounting for the largest share of POS transactions.
Restaurants and cafes followed with a 20.9 percent increase to SR1.9 billion, while apparel and clothing spending rose 30 percent to SR1.6 billion, ranking third.
Together, the top three categories accounted for approximately 36.53 percent of total POS spending, or SR6.22 billion.
Saudi Arabia’s major urban centers mirrored the national surge.
Riyadh, which accounted for the largest share of POS spending, saw a 21 percent increase to SR5.61 billion, up from SR4.63 billion the previous week.
The number of transactions in the capital rose 12.2 percent to 79.6 million.
In Jeddah, transaction values increased 25.6 percent to SR2.24 billion, while Dammam posted a 26.1 percent rise to SR831.93 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
