Tesco Posts Seventh Consecutive Quarter Of Growth

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Tesco Posts Seventh Consecutive Quarter Of Growth

The retailer's United Kingdom like-for-like sales in the second quarter also experienced a 2.1 per cent uptick, although this was a slight slowdown on the 2.3 per cent recorded in the previous three months.

Lewis also confirmed that Tesco would resume paying a dividend for the first time in three years, at 1p a share interim payout.

Two members of Tesco's financial team resigned in 2014 because they were concerned that their professional integrity was being compromised by what they were being asked to do by their bosses, a court heard on Tuesday.

Tesco's overall operating margin also up to 2.7 per cent from 2.2 per cent in the same period last year, and the company said it was on track to hit a 3.5 to four per cent ambition in its 2019/20 fiscal year.

Chief Executive Dave Lewis explained that the announcement reflected the confidence that they could build on their strong performance to date and that in doing so, they could create long-term sustainable value for all of their stakeholders.

"All of this is possible because of the focus we have placed on serving shoppers a little better every day".

"There's not many things more telling about the health of company than its ability to pay a dividend, and Tesco's return to the register after a three-year hiatus speaks volumes about the progress the company has made".

An interim dividend of 1 pence will be paid which "reflects improved performance and board confidence".

Lewis said Tesco had not seen any change in buying patterns in the wake of a joint investigation by the Guardian and ITV News that reported evidence staff at a central England plant of chicken supplier 2 Sisters had tampered with food safety records.

"As the trial begins of three former senior executives accused of cooking the books during Tesco's bad old days, this barnstorming result shows how far the turnaround has come".

"After seven consecutive improvements in sales, Tesco has finally reinstated the shareholder dividend in the clearest sign yet that the rot has been stopped".

"Market conditions have been challenging with inflationary pressure being felt throughout the half but we have worked hard with our supplier partners to minimise price increases for customers", the retailer said.

That compared with an after-tax loss of £91-million a year earlier.

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