Tesco profit tops forecasts

Chief Executive Terry Leahy said improved service and ranges in its nearly 1,900 British stores helped account for the record profits, alongside 30 percent growth in its organic food sales and a 12.6 percent rise in non food revenues.

Clothing and electronics sales surged 19 percent and 36 percent respectively, Leahy said.

"Because of that we have been able to attract more customers

and they have spent more," Leahy said in a telephone interview.

"International continues its rapid development with sales of almost 18 percent at constant currency rates and a strong profit performance as well."

The country's biggest supermarket group said underlying profit before tax was 1.15 billion pounds in the 26 weeks to August 26, versus the comparable 26 week period the year before.

The average forecast of analysts in a Reuters poll was 1.122 billion pounds, within a range of 1.06 billion to 1.15 billion.

Sales including VAT (value added tax) were up 12.7 percent at 22.7 billion pounds. Excluding VAT they were up 12.6 percent at 20.7 billion pounds.

Analysts at brokerage Numis said Tesco's sales in Britain and internationally were strong.