Supermarket group Tesco, Britain's biggest retailer, said Thursday that net profit gained in its first half as cost pressures eased for consumers and companies. The company noted that "sales inflation returned to more normalised levels as cost inflation headwinds eased".

Tesco , Britain's biggest supermarket group, lifted its annual profit forecast on Thursday after market share gains drove a 10% rise in the first half, giving it momentum ahead of the festive trading period.

Shares of FTSE 100-listed Tesco PLC ($GB:TSCO) surged over 3% as of writing after the company increased its retail adjusted operating profit

Profit and revenue increased in the first six months of the financial year for British retailer and supermarket operator Tesco plc. Tesco reported on Thursday a profit before tax from continuing operations of £1.

Tesco said sales rose 4 per cent to £3.15billion in the 26 weeks to 23 August, compared with the same period a year ago. More shoppers are buying its premium Finest range, it said.