The supermarket group on Wednesday forecast retail adjusted operating profit, its key profit measure, of “at least” £2.8 billion (US$3.55 billion) for its 2024/25 year.

It made £2.76 billion in the year to Feb. 24 2024, slightly ahead of guidance of £2.75 billion and up from £2.49 billion made in the previous year.

Group sales, excluding VAT sales tax and fuel, rose 7.4% to £61.5 billion, with UK like-for-like sales up 7.7%.

Tesco has a 27.3% share of Britain’s grocery market, up 40 basis points on the year, according to industry data.

The group, whose shares are up 9% over the last year, is benefiting from a strategy of matching the prices of discounter Aldi on key items, and the popularity of its Clubcard loyalty scheme, which provides lower prices for members.