Pre-tax profits reached £41.1m in the year to February 28, surging 319 per cent from the £9.8m posted the same time last year.

It also saw revenues edge up by 1.5 per cent, totalling £7.8bn in the latest financial year, up from £7.7bn the previous year.

The discounted chain opened 53 new stores over the year to February, bringing the total to 918 across Britain.

Lidl, which was named the UK’s cheapest supermarket this month by The Grocer, stressed that it would continue to meet its promise to customers of offering the lowest prices in the market.

More than 770,000 extra people shop with the supermarket each week compared with last year as consumers change their shopping habits to save money, Lidl said.

That amounts to £58m in total spending that shoppers have switched from traditional supermarkets, according to the research.

But Lidl cautioned that supply chain pressures have increased the risk of not being able to meet customer demand, and that there is “no assurance” that the issues will not worsen in the future, which could further increase costs.

Profits at the British arm of supermarket chain Lidl have more than quadrupled with it having undertaken an ambition expansion of stores and customers over the year

The chain said it has been affected by labour shortages caused by Brexit and disruption caused by the pandemic.

It also noted that it has seen a shift in consumer habits to more of a focus on healthy eating.

Ryan McDonnell, Lidl Great Britain’s chief executive, said: “Our business model is built for the long term and I’m incredibly proud of our continued growth in recent months, which builds on our strong performance across 2021.

“During this time, we’ve made further investments across all areas of our business, building even more stores and distribution centres, hiring more colleagues, increasing pay rates, investing in our British supplier base and contributing to the communities we operate in.

“As a discount supermarket we are in the best possible position to support people through these challenging times, and it’s our absolute priority that we continue to do so.”

Lidl recently announced plans to increase hourly pay rates for all its store and warehouse workers under a £39.5m investment.

Lidl said more than 23,500 employees across the country will get a pay rise, with a full-time worker earning around £2,000 more a year.

Mr McDonnell said recently: “We have introduced these rate increases to reflect the key role and tireless efforts of our incredible colleagues working in our 935 stores and 13 warehouses.

“The role that we as a discounter play in giving households access to good, affordable food cannot be underestimated, now more than ever.

“But the ongoing commitment and dedication of our colleagues in making it all possible for our customers cannot be underestimated either – our business simply would not run without them.”

Lidl’s profits quadruple as shoppers switch to cheaper supermarkets