Tesco has announced pre-tax profits of £1.3bn for the year ending February 24, up 28.4% on the previous year.
The company delivered growth of 2.7% across its Express convenience stores, with like-for-like UK sales rising by 2.2% year on year.
The results are in stark contrast to 2014 when Tesco reported a statutory pre-tax loss of £6.4bn.
Tesco also gave an update on its merger with Booker which took place on March 5, after the end of the company’s financial year.
The supermarket said Booker Q4 results showed “a continued strong performance, with customer satisfaction up 0.3% to 85.7% and like for-like sales up 9.9%.”
Booker’s full year results are subject to audit approval but pre-tax profits for the financial year to March 30 stand at £195m.
Commenting on the results, Tesco chief executive Dave Lewis said: “This has been another year of strong progress, with the ninth consecutive quarter of growth.
“More people are choosing to shop at Tesco and our brand is stronger, as customers recognise improvements in both quality and value.
“We have further improved profitability, with group operating margin reaching 3.0% in the second half.
“We are generating significant levels of cash and net debt is down by almost £6bn over the last three years.
“All of this puts us firmly on track to deliver our medium-term ambitions and create long-term value for every stakeholder in Tesco.”
He added: “I am delighted to have completed our merger with Booker and we are moving quickly to deliver synergies and access new growth, making the most of the complementary skills in our combined business.”
Lewis also said that the Tesco group was on track to deliver at least £200m of annual cost savings following its deal with the Booker Group.
Tesco has already opened a Booker ‘Chef Central’ concept store within its Tesco Extra store at Bar Hill, Cambridge in February this year, open to all customers but primarily designed for caterers.