Tesco Ireland said today that its sales grew by 9.8% to €2.9 billion in 2007. It said the increase was driven by strong growth in non-food sales and continued buoyancy in its core food and grocery sales.
Earlier, its UK parent - the world's third-biggest retailer - met forecasts with an 11% rise in annual profits today and said it had made a strong start to its new financial year.
Britain's biggest supermarket group said it made a trading profit of £2.75 billion sterling in the 52 weeks to February 23, led by strong growth in its international and online businesses.
Tesco Ireland said that it plans to create another 1,225 jobs this year around the country as it opens 16 new stores in investments worth €150m. The group already employs over 13,000 people in 101 stores nationwide.
Tesco Ireland chief Tony Keohane also said consumers could expect to see the benefit of lower sterling in food prices this year.
During 2007, Tesco opened six new stores in Abbeyfeale, Co Limerick, Coonagh Cross in Limerick, Claremorris, Co Mayo, Westport, Co Mayo, Castlepollard, Co Westmeath and Camden Street in Dublin. Three new petrol stations were also opened in Clonmel, Arklow and Claremorris.
'The results reflect continued progress for the business on all fronts, resulting in the creation of 800 new jobs during the year,' commented Tony Keohane, CEO of Tesco Ireland.
'We are confident of continued growth for the year ahead,' he added.
Meanwhile, Tesco today moved to knock down a rash of negative speculation about its business in recent weeks, announcing a market-pleasing property deal and revealed that sales at its new US venture 'Fresh & Easy' were ahead of budget.
CEO Terry Leahy also unusually provided a growth forecast of 3-4% for the full year 2008/2009. Leahy said that the tough UK economy, with rising energy prices and mortgage repayments crimping spending, meant shopper habits were changing but Tesco tended to 'grow market share in this kind of environment'.
Sales from its international operations - spanning 12 countries from China to Thailand, Turkey and the US - also grew strongly, rising 22.5% at constant exchange rates.
In the US, where it now has 60 stores after launching last November, sales were ahead of budget and sales densities were higher than the US supermarket average with the best stores exceeding $20 per square foot, Tesco said.
But with Tesco aiming for a total of 200 stores open by the end of this financial year, US trading losses are set to widen to £100m from £62m last year, the company said.
