Tesco this morning reported an 11.8 per cent rise in annual profits to £2.846 billion as group sales at the UK's largest retailer rose 11 per cent to £51.8 billion.
International sales were up 25.3 per cent in the year ended February 23rd and Tesco said that it now made half of its group trading profit from its stores overseas.
Higher revenue in Asia and eastern Europe offset slowing UK sales, Tesco said today in a statement.
The retailer has stores in more than 10 countries from Ireland to Japan, and opened its first outlets in the US during the fiscal year.
Tesco operates 101 supermarkets in the Republic.
UK sales increased by 3.5 per cent on a like-for-like basis, excluding petrol, as Tesco said it coped with a particularly tough second half.
The results were in line with analysts' forecasts.
Net income climbed to £2.1 billion, or 26.61 pence a share, in the year ended February 23rd, from £1.89 billion pounds, or 23.54 pence, a year earlier.
The increase in annual profit was the slowest in eight years as higher mortgage, tax, utility and fuel bills weighs on incomes in the retailer's domestic market.
Earnings this fiscal year have had a "strong start", Tesco said in the statement, with same-store sales rising 4 per cent in the UK, excluding fuel, in the first five
weeks.
Like-for-like sales, excluding fuel, in its core UK market rose 3.5 per cent, and were up over 4 per cent in the first 5 weeks of its new financial year, it said in a statement.
Chief Executive Terry Leahy said in an interview the tough economy meant consumer habits were changing but Tesco tended to "grow market share in this kind of environment".
"It is not all gloom, there are opportunities," Mr Leahy said in an interview, "customers are more likely to look for value and value is one of the strengths for Tesco. We are a company for all seasons."
The retailer lowered the price of more than 12,500 products in its British stores in the first three months of 2008, to retain customers. UK consumer confidence fell to the lowest in almost four years in March as higher mortgage, tax, utility and fuel bills weigh on incomes.
Agencies