Tesco predicted yesterday that it would be one of the fastest-growing big retailers in the world this year as it hit back at critics and reported annual pretax profits of nearly £3 billion.

Sir Terry Leahy, its chief executive, said that the supermarket giant was well placed to ride out the economic storm – “we are a company for all seasons” - and rubbished rumours that Fresh & Easy, the group’s fledgeling American business, was struggling.

He said that sales across the 60 Fresh & Easy stores, open since November, were ahead of expectations and that customers “loved” the format, despite widespread speculation that the project had proved a flop.

Sir Terry said: “The only thing I regret about Fresh & Easy is not doing it 20 years ago.”

Tesco’s shares leapt 28½p, or 7 per cent, to close at 419½p.

Full-year results showed that pretax profits across the Tesco empire rose nearly 12 per cent to £2.8 billion in the year to February 23, on revenue of £47.3 billion – up 11.1 per cent. International profits rose 24 per cent to £701 million, the same amount that was generated by the whole of Tesco a decade ago. British like-for-like sales are up by more than 4 per cent in the past five weeks, with Tesco’s Finest and Healthy Living ranges among the bestsellers.

Total UK sales rose 6.7 per cent in the year to February, with online sales up by nearly 31 per cent.

Sir Terry said: “The group’s growth prospects are better now than they have ever been before.

“Clearly, you don’t need me to tell you that the US and UK are slowing, but Tesco is a value-based brand and we have been through this before. Our price position has never been stronger. We had the fastest rate of growth of any major retailer in the world last year and we feel we will able to maintain a good rate.”

Tesco will invest £4.2 billion over the coming year, despite the economic gloom, in an expansion drive that will involve nearly ten million sq ft of new space being opened overseas and will create 30,000 jobs worldwide.

At least four mammoth, four-floor shopping centres are planned for Tesco’s burgeoning business in China, with each expected to house a Tesco hypermarket, a leisure centre and dozens of local stores.

Tesco will own each 500,000 sq ft mall – nearly half the size of Blue-water in Kent – in the latest sign of the supermarket group’s growing scale in the commercial property market.

Sir Terry said that Tesco would open another 150 Fresh & Easy stores in America and insisted that the format remained on track to break even in 2009-10. No sales figures were released for Fresh & Easy yesterday, but the chain is expected to book a £100 million loss this year. Yesterday’s results follow widespread speculation that the concept, based on Tesco Express convenience stores in the UK, has been a failure, with some stores rumoured to be missing sales targets by as much as 70 per cent.

Jeff Adams, Tesco’s chief executive in Thailand, was parachuted into the Fresh & Easy team last month and new store openings have been put on hold until July – a pause that Tesco insisted had always been planned.

Sir Terry said: “There’s been a lot of vested interest behind some of the comments and some genuine, misplaced criticism. If I’m armed with the facts, why should I worry about what people say?” Sir Terry said that he was was “perplexed” at the criticism that Tesco receives, given the overwhelming number of customers who enjoy shopping at its supermarkets.

Tesco’s tax charge fell to £673 million in the year to February after a tax rebate from the Treasury of nearly £200 million.

Matthew Truman, retail analyst at Lehman Brothers, said: “Tesco’s strong results should return the market to the reality that this company once again achieved double-digit sales and earnings growth, and has started 2008 in a similar vein.”

Tesco by numbers

£37.9bn

UK sales

10.9p

final dividend

£304m

profits from Asia operations

56

stores in China

12

countries outside the UK, where Tesco operates

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