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 Arabia’s approach to AI transformation delivering business value: Publicis Sapient CEO
- Nigel Vaz: We’re reimagining how, in the case of tourism, we transform Saudi Arabia into a destination that is actually relevant and attractive for people to explore
- Vaz: Our Slingshot platform handles everything from design to deployment, allowing legacy modernization and new digital apps to be built
DAVOS: As 2026 emerges as a tipping point for artificial intelligence, executives across the Middle East are moving from experimentation to scaling AI in ways that can deliver real business value, according to Nigel Vaz, CEO of Publicis Sapient.
Speaking to Arab News at the World Economic Forum in Davos, Vaz highlighted Saudi Arabia’s proactive approach to integrating technology into national and sectoral strategies.
“I was in meetings with the minister for tourism in Saudi Arabia (Ahmed Al-Khateeb), where we do a lot of work for them, and meetings with (Communications) Minister Abdullah Alswaha,” he said.
“What you realize is technology is incredibly critical, but it’s critical to the extent that we’re reimagining how, in the case of tourism, we transform Saudi Arabia into a destination that is actually relevant and attractive for people to explore.”
Vaz also highlighted applications of AI beyond tourism, including energy and healthcare.
“You’re thinking about how it can enable a greener approach to energy, which is a big goal for their government,” he said.
“And in healthcare, predictive and preventative approaches allow trends to be addressed before they occur, which is a significant cost saving for the government,” he added.
The shift in mindset around AI reflects a broader trend globally.
“Last year there was a lot of excitement about AI, but most work was at a proof-of-concept stage,” Vaz said. “What’s tipped this year is the recognition that AI is only valuable if it drives real business outcomes.”
This involves moving beyond automating individual tasks to enabling entire workflows or decision sets that produce superior results.
“Individual tasks being automated by AI don’t create business benefit,” he said. “Entire workflows or decision sets need to be enabled by AI, and they must deliver better outcomes than are currently possible today.”
Vaz underscored the importance of integrating people and AI rather than treating technology as a replacement, adding: “Unless you’re a technology nerd, you’re not really caring about the technology for its own sake.”
Geopolitical tensions further heighten the importance of AI for real-time, intelligent decision-making. Vaz explained that Publicis Sapient has developed platforms such as Slingshot, Bodhi and SustainAI to deliver enterprise-grade AI solutions with measurable business impact.
“Our Slingshot platform handles everything from design to deployment, allowing legacy modernization and new digital apps to be built two to three times faster and 30 to 40 percent cheaper,” he said.
Bodhi leverages industry expertise to create agentic capabilities for autonomous decision-making, while Sustain transforms IT service management, using AI to monitor systems, self-heal, and reduce manual workload, he explained
“All of this is not to sell software; it’s to deliver outcomes to clients. That’s what we care about,” Vaz added.
He offered guidance for leaders navigating the AI era.
“An AI North Star is focusing on an area of the business where untapped value can be unlocked,” he said. “Focus on how that value will drive growth, reduce costs, or improve experiences for customers or employees, and use AI to achieve those outcomes, rather than experimenting in small pockets.”
For Vaz, 2026 represents a year when enterprises, particularly in forward-looking Middle Eastern economies like Saudi Arabia, are moving from theory to practice, scaling AI to deliver tangible impact and measurable outcomes for businesses, governments, and citizens alike.
