Tesco PLC have announced an interim dividend of 3.20p

DividendMax Ltd.

Tesco PLC have announced an interim dividend of 3.20p

The Tesco PLC interim dividend has been set at 3.20 pence per ordinary share, in line with the prior year and aligned to their policy of setting the interim dividend at 35% of the prior year full-year dividend. The interim dividend was approved by the Board of Directors on 5 October 2021. It is their intention to pay a progressive dividend going forward - i.e. they will aim to grow the dividend per share each year, broadly targeting a pay-out of around 50% of earnings.

The interim dividend will be paid on 26 November 2021 to shareholders who are on the register of members at close of business on 15 October 2021 (the Record Date). Shareholders may elect to reinvest their dividend in the Dividend Reinvestment Plan (DRIP). The last date for receipt of DRIP elections and revocations will be 5 November 2021.

Other financial highlights include:

Total adjusted retail operating profit £1,386m, +16.6% at constant rates

UK & ROI adjusted operating profit £1,318m, +16.5% due to higher sales and lower COVID-19 costs, part offset by YoY effect of last year's £249m business rates relief (repaid in H2 last year)

Central Europe adjusted operating profit £68m, +18.6% due to lower COVID-19 costs & higher YoY mall income

Bank adjusted operating profit £72m, returning to profit following last year's increase in potential bad debt provision

Retail free cash flow £1,543m, +93.6% inc. higher profit, lower pension contribution & c.£400m working capital phasing

Net debt reduced by +£1.7bn since February reflecting strong cash flow 

Adjusted diluted EPS 11.22p, +54.0% reflecting higher retail profits and return to profitability for Tesco Bank

Strong first half performance leading to increased full year profit expectations: adjusted retail operating profit now expected to be between £2.5bn and £2.6bn

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