TESCO HAS OUTLINED that its operating profit may reach up to £3.1 billion (€3.5 billion) for Ireland and the UK after strong Christmas sales according to its latest forecast.

The grocery chain said its Republic of Ireland stores saw sales rise 3.8%, with combined UK and Ireland trading up 3.3%.

Over the festive period – covering six weeks up to 3 January – food sales were up and the company saw “particularly strong growth” in fresh food.

Across its third financial quarter Tesco saw sales up 5% at its stores here.

This was slightly ahead of its growth in the UK but Irish sales were a well ahead ahead of the company’s performance in its other European markets, including Poland and Hungary.

The operating profit Tesco is forecasting ranges ⁠from £2.9 billion to £3.1 billion (€3.3 billion to €3.5 billion).

Tesco does not report its profit for Ireland and instead presents the overall figure from its stores here and in the UK.

The healthier financial picture comes at a time when supermarkets are under scrutiny given high food price inflation.

The Social Democrats have looked for major supermarket chains to publish their financial records, arguing that it was necessary due to cost-of-living pressures facing people.

Recent findings from the Central Statistics Office found the highest annual rate of inflation in almost a year. Key grocery items such as milk, meat, and butter all saw increases.

That report also found that festive treats like chocolate have grown by 11.5%, making the run-up to Christmas more expensive for households.

Tesco’s report today also notes that it opened five new store openings during the last quarter and has rolled out its same-day deliver service Whoosh to 18 new locations, covering Dublin, Cork and Galway.