Taoiseach Bertie Ahern T.D, at a Tesco Ireland presentation

Tesco Ireland reported today sales of almost €2.5 billion for the year to the end of February, an increase of 16% on the previous year. The group does not disclose profits for its Irish operations.

The company said particularly strong growth was recorded in non-food sectors such as clothing, hardware and home entertainment. Tesco Ireland said it made price cuts valued at €40m during the year.

The company said that its share of the retail petrol market was now 5%, with three new filling stations opened during the year. Online grocery sales rose 24% to €18.8m, while its personal finance unit issued 26,000 credit cards and 2,600 car insurance policies.

Tesco Ireland has 93 stores and employs 12,500. Four new stores are under construction. Chief executive Tony Keohane described the performance as satisfactory given the strength of competition in the market.

Tesco Plc reported annual profits of £2.2 billion - a rise of almost 17% on a year earlier. The latest improvement included a 10.7% rise in total sales at its UK stores, even though the company said it had been a 'more challenging year'.

Tesco also disclosed plans raise up to £5 billion from the reorganisation of its property portfolio over the next five years.