Tesco announce record profits amidst the global economic turmoil.

Leading UK supermarket Tesco, has posted a 15.1% increase in group sales to £59.4 billion for the 53 weeks to 28 February 2009.

In the UK, trading profit rose by 12.7% to £2,381 million including that of Tesco Personal Finance, which has delivered a strong performance considering the challenging times the banking sector has faced in the trading year. 

The supermarket giant has also pledged to create 26,000 new jobs across the group in 2009, including 11,000 in the UK.

Tesco Chief Executive Terry Leahy commented: “At a time when customers everywhere are feeling the strain, we are responding to their changing needs in all our markets by lowering prices, introducing more affordable products and offering even sharper promotions.

“We have made a good start to the new financial year and I am confident Tesco will continue to make good progress even in the current global economic climate.”

Other highlights in the trading report include a boost to Tesco’s green credentials, which shows a 50% reduction in plastic carrier bag usage. It removed plastic bags from tills in some of its larger stores in summer 2008, and actively encourages shoppers to re-use bags for their shopping by rewarding them with ‘green’ clubcard points awarded for every bag re-used.

Tesco’s international business also delivered a strong performance, helped in part by favourable exchange rates, contributing £709m to trading profit. Asia performed particularly well, with sales growth of 29.4% to £7.9bn. However, the supermarket has not fared so well in the US with its Fresh and Easy brand. Although like-for-like sales have increased by 30%, it has posted total trading losses of £142m.