Tesco shares fall despite dividends being restored

Tesco shares fell up to 4% yesterday as a strong contribution from international assets to its first-half earnings suggested the British retailer is not immune to Brexit effects.

However, the company restored its dividend after three years without one, marking a milestone in its comeback from an accounting scandal over which former executives are currently on trial in London.

While Tesco’s first-half pre-exceptional operating profit of £759m (€856m) was up 27% and beat analyst estimates, the overall results for the six months to the end of August were bolstered by international earnings.