Tesco shares fall sharply despite announcing first annual increase in sales in seven years
Shares in the supermarket giant Tesco have fallen sharply despite the announcement of a 30pc rise in operating profits.
While the company announced its first annual increase in sales in seven years, investors are nervous as food prices rise against the weak sterling.
Tesco stores in the UK have already experienced shortages of household brands made by Unilever including Knorr, Persil, and Ben & Jerry’s ice-cream, as the two companies engaged in a row over the price of the goods.
Investors have also expressed concerns regarding the grocery chain’s proposed £3.7bn (€4.3bn) acquisition of wholesaler Booker, the group behind Londis.
Two major Tesco shareholders, Schroders and Artisan Partners, which combined own 9pc of Tesco, have both written to the chair of Tesco, John Allan, citing their opposition to the deal, the Guardian reports.
Tesco’s pension deficit has also doubled in twelve months to 5.5bn (€6.4bn), which will be of concern to investors.