Tesco profit rises 11.6% as online sales grow

Tesco said its net profit rose 11.6 percent in its fiscal first half, helped by growth in online sales for its core food business.

Britain's biggest retailer said profit after tax reached £1.06 billion, or $1.39 billion, in the six months to the end of August. Revenue rose 3.7 percent to £37.35 billion.

Chief executive Ken Murphy said Tesco's digital channels were important growth drivers, with online sales up eight percent in the half. Sales from Whoosh, its 20-minute delivery service, rose 37 percent.

Fuel sales at Tesco petrol stations rose almost 20 percent to £3.58 billion. Diesel prices have reached record highs across Britain in recent weeks during supply disruptions from the US-Iran war.

Tesco slightly lifted the bottom of its forecast range for full-year adjusted operating profit and increased its share buyback. Its share price rose 4.0 percent in early Thursday trading, topping London's FTSE 100 index while the index overall was down 0.5 percent.