Supermarket Tesco today posted pre-tax profits of £1.6 billion sterling for the 26 weeks to August 28, up 12.5% on the previous year.
Group sales were up over 8% to £32.9 billion, while the company announced a dividend per share of 4.37 pence, up 12.3% on the same time last year.
The company said that its Irish business delivered a successful turnaround. Tesco said that 'the fundamental changes' it made last year to cope with the effects of the economic contraction have been very successful. It added that it has resumed growth and increased market share.
'Customers are responding positively to our improved pricing and range and significant uplifts in volumes have now more than offset the impact of sharply lower prices, resulting in positive like-for-like sales growth and a solid profit performance,' the company said.
It said that with the economic outlook improving, it is stepping up the rate of opening new stores, as planned, with a programme to add 2.9m square feet of new space across Europe in 2010/11.
Tesco last month opened a new store in Kinnegad, Co Westmeath and also recently opened new stores in Dublin and Bray.
'The global economic headwinds of the last two years are being replaced by the tailwinds of recovery in most of our markets and this is helping our international businesses to resume strong sales and profit momentum,' said Tesco chief executive Terry Leahy.
He said that its 'important' Asian markets in particular are emerging strongly from recession. He added that the company is now benefiting from the substantial investment it continues to commit to the region during the downturn.
Leahy announced in June that he was stepping down in March 2011 after 14 years as chief executive. Leahy, who turned Tesco from a solid British food retailer into a worldwide operation also selling electrical items, clothes and financial products, will be replaced by its head of Asian, European and IT operations Philip Clarke.
The company is now the world's third largest retailer after number one Wal-Mart and French supermarket giant Carrefour.
