Supermarket Aldi saw UK pre-tax profits surge 124% to £157.9m in 2012, with the company saying it attracted a million more shoppers through its doors.
The discount chain's latest accounts posted at Companies House show revenues up 41% to £3.9bn last year.
During 2012 the firm opened 34 new stores, adding that it was on track to open 50 new stores in 2013.
Recent data from Kantar Worldwide showed Aldi had a 3.7% share of the supermarket sector.
Group managing director Matthew Barnes said the firm had benefitted from its pricing strategy.
"We have a simple low pricing offer that customers really understand and we don't try to confuse them with the likes of multi-buy promotions," he said.
But the company's premium 'Specially Selected' range also grew, with sales up 40% after it doubled the number of products available.
Mr Barnes added Aldi was attracting a broader demographic of customers, with the company opening stores in more affluent locations of the UK. Aldi is due to open its 500th UK store next month.
Neil Saunders, managing director of retail analysts Conlumino, said Aldi had out-performed its peers in the supermarket industry.
"They have been growing for two reasons; the first of which is the current austerity mindset where people are shopping around for a better deal," he said.
"The other thing Aldi has done is pushed the perception and image of the store upward, improving brand perceptions and store environments."