Tesco said it is commited to serving shoppers a little better each day in a market which remains challenging and deflationary.

On Wednesday Tesco Plc (LON:TSCO) released its preliminary results for 2015/2016 in which it called a “a year of significant progress”.

The company said it had made significant progress on all three of its transformation priorities which saw group sales rise by 0.1% to £48.4 billion. The business recorded a statutory operating profit of £1.04 billion compared to a £5.75 billion loss in the prior year. The groups operating profit before exceptionals was reported at £944 million, up 1.1%.

Dave Lewis, Chief Executive:

“We have made significant progress against the priorities we set out in October 2014.  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.

Our process of transformation has generated broad-based positive momentum in the UK and internationally.  We set out to start rebuilding profitability whilst reinvesting in the customer offer, and we have done this.  More customers are buying more things more often at Tesco.”

Looking forward the business said it is continuing to invest in its customer offering to ensure its competitiveness is improved especially in what is currently a “challenging, deflationary market”. Tesco said it was confident that the new changes would lead to sustainable improvements for consumers whilst also resulting in improved profitability and shareholder value.