Supermarket giant Tesco saved £112m in logistics and distribution activities, it announced in its full year preliminary results to February 2019.
Tesco is hoping to reduce operating costs by £1.5bn, with its UK & Ireland division hoping to strip costs by £894m.
Tesco spent £15m relating to costs incurred in integrating Booker within the umbrella company, mainly focused on aligning distribution networks and operating platforms, according to Tesco’s financial report.
“After four years we have met or are about to meet the vast majority of our turnaround goals. I’m very confident that we will complete the journey in 2019/20,” said Dave Lewis, Tesco’s Chief Executive.
“I’m delighted with the broad-based improvement across the business. We have restored our competitiveness for customers - including through the introduction of ‘Exclusively at Tesco’ - and rebuilt a sustainable base of profitability. The full year margin of 3.45% represents clear progress and the second half level of 3.79%, even before the benefit of Booker, puts us comfortably in the aspirational range we set four years ago.
“I’m pleased that we are able to accelerate the recovery in the dividend as a result of our continued capital discipline and strong improvement in cash profitability,” he concluded.