The supermarket giants said the reasons for the gains included an 18 per cent rise in the use of Clubcards
Group sales, excluding petrol, went up by 6.8 per cent to £62.5bn in the 52 weeks to 27 February.
Chief Executive Terry Leahy said: “By remaining focused on our strategy Tesco has weathered the economic storm well.
"Across the Group, we have successfully adapted our cost structures and ranges to help customers save money when they've needed to and treat themselves when they've wanted to.”
Leahy also said that the ash cloud disruption had a minimal impact on the business because only one per cent of produce was flown in. He added that Kenyan goods were being imported through Spain because of the flight ban.