Aldi, the retailer with 47 stores in Scotland, more than doubled pre-tax profit last year from £70 million to £158m.
The German group, which has three more stores in the pipeline north of the Border, chalked up a 41% rise in turnover to £3.9 billion.
It said increases in footfall, market share and basket size had all driven the strong growth as more people "are choosing to shop at Aldi for its great quality and value".
It has continued to expand in 2013 with its 500th UK store due to open this month.
Market share reached 3.2% at the end of 2012 after 34 new stores opened. The discount grocer attracted 1m more shoppers last year and industry data show a further rise of 1.1m shoppers up to mid-September.
Aldi employs over 1000 across its Scottish stores, and has continued its commitment to support Scottish suppliers, with more than 250 products currently stocked from more than 60 different suppliers.
Matthew Barnes, joint group managing director, said: "We have a simple low pricing offer that customers understand and we don't confuse them with the likes of multibuy promotions."
Aldi's average core grocery basket spend is now £18.63, with an average basket size of 16 to 17 products, almost on a par with Morrisons and Sainsbury's.
Recent Kantar data shows the discount grocer recording a 32.7% increase in year-on-year sales and maintaining its all-time record market share of 3.7%.
Joint managing director Roman Heini commented: "Experts talk about polarisation among supermarkets as, along with Aldi, Waitrose is experiencing growth."
The grocer invested £116.5m in its new UK stores in 2012, creating 5200 new jobs including 200 apprenticeships, and is currently on schedule to invest a further £185m in 50 new stores, creating almost 6000 jobs in 2013.
This year, Aldi became the only supermarket to win Which? magazine's Best Supermarket of the Year award two years running, and it also won The Grocer magazine's Supermarket Grocer of the Year award.
It is currently investing in a new £1m customer service centre at its headquarters in Warwickshire.