Tesco’s turnaround under CEO Dave Lewis defied city forecasts by notching up £1.3 billion profits last year.
The company’s preliminary results showed total sales hit £51bn, with like-for-like sales up 2.2 per cent, attributing the rise to consistent strength in fresh food.
Other innovations included a contactless Clubcard, an own brand re-launch and new Wicked Kitchen vegan range. Tesco also racked up £31 million from its property portfolio.
Tesco boss 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 per cent 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.'
Lewis added that the takeover of wholesaler Booker in February will only strengthen its business, predicting £60m synergy benefit in their first year together.
“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.”
Tesco shares rose four per cent following the results’ announcement.
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