London  - Tesco, Britain's largest supermarket chain, on Tuesday reported a rise in profits of 11.8 per cent to nearly 2.9 billion pounds (5.8 billion dollars) in 2007.

The retailer said sales rose to 51.8 billion pounds, an increase of 11 per cent over 2006. The increase comes at a time of rising inflationary pressures on food prices in Britain.

Tesco's international sales were up 25.3 per cent, as Tesco said it now made half of its group trading profit from its stores overseas.

The retailer, which offers competitive prices for upmarket products, has extended massively in Asia and Eastern Europe, and is also planning to set up branches in the US.

The expansion drive overseas will continue this year with plans to open new stores, 80 of which will be outside Britain. (dpa)