LONDON (AFP) - Tesco reported a 24-percent rise in interim underlying profits, boosted by growth in customer numbers in its home market as well as expansion overseas.
Pre-tax profit before one-off charges and goodwill items jumped to 822 million pounds (1.2 billion euros, 1.5 billion dollars) in the 24 weeks to August 14, from 661 million pounds during the same period of the previous year.
The results beat analysts' expectations of around 780 million pounds.
Net profit increased by 30 percent to 560 million pounds.
Group sales climbed by 12 percent to 16.5 billion pounds, or by 13.7 percent at constant exchange rates.
"These results demonstrate the growing success of the four-part strategy we began seven years ago," Tesco chief executive Terry Leahy said Tuesday.
"We are well-placed to meet the challenges of tougher (year-on-year profit) comparisons during the second half," he added.
Sales at Tesco's British operations grew by 11.5 percent to 13.1 billion pounds during the first half, helped by price cuts of five million pounds per week and a 17-percent surge in sales of non-food items.
Clothing sales alone grew by 39 percent, while sales of home entertainment equipment such as televisions rose 26 percent.
"We have seen significant growth in customer numbers and they are choosing to spend more per visit," on average three percent, the retailer said.
Tesco, which operates in 12 European and Asian countries including Britain, said international sales jumped by 14.9 percent to 3.4 billion pounds during the first half of its financial year, despite the strong British pound.
The company opened 34 stores in the first half, including 13 hypermarkets, and plans to open a further 65 before the end of its current financial year.
Tesco announced in July that it had won its first foothold in China, having signed a 50-percent joint venture with retail chain Ting Hsin for its wholly-owned Ting Cao subsidiary, owner of the Hymall chain of stores in China.
Tesco said that it expected to complete the deal in the second half of this year.
The price of shares in Tesco rose by 2.09 percent to 281 pence as dealers cheered the results, while rivals J Sainsbury fell 1.36 percent to 271 pence and Morrison Supermarkets dropped 0.25 percent to 199.5 pence.
"It took Tesco 75 years to break the one billion pound (full-year) profit barrier. It now looks like it will break the two billion barrier within four years," broker Citigroup Smith Barney said in a note to clients.
Market research group Taylor Nelson Sofres said last month Tesco had grown its share of Britain's 70-billion-pound annual grocery market to 28.1 percent from 26.8 percent a year earlier.