Tesco PLC (LON:TSCO) posted higher sales and profits and said its recovery was on track.
The troubled supermarket giant said operating profit before one-off items rose 1.1% to £944mln in the 52 weeks to February 27 on a 0.1% increase in group sales to £48.4bn.
In the fourth quarter, UK like-for-like sales lifted 0.9% and group like-for-like sales rose 1.6%. Statutory operating profit was £1.05bn against a loss of £5.75bn last time.
The group said UK volumes were up 3.3% in the fourth quarter and transactions increased 2.8%. International volumes lifted 5.5% in the period.
Tesco said it had achieved its initial plan to save £400mln and the chain was now seeing positive and improving like-for-like sales growth trends in all regions including the UK and Ireland, mainland Europe and Asia.
It had reduced total debt by £6.2bn, helped by a contribution from the sale of Homeplus in Korea.
The group's banking arm had increased customer deposits and lending strongly and Tesco Mobile had continued to boost customer numbers to 4.6mln.
New chief executive Dave Lewis, who took over from Philip Clarke following accounting problems and several profit warnings, said the group had made significant progress.
He has embarked on a cost-cutting drive and sold off non-core businesses including recently announced plans to off-load coffee shop chain Harris + Hoole.
The group has also revamped its sales strategy, including reducing multi-buy offers and voucher promotions in favour of reducing prices on a number of essential products.
Lewis said: "We have regained competitiveness in the UK with significantly better service, a simpler range, record levels of availability and lower and more stable prices.
"Our balance sheet is stronger and we are making good progress in rebuilding trust in Tesco and our investment case."