Morrisons' pre-tax profit dropped more than a quarter in the full year to 31 January to its lowest point since 2007.
The grocer posted its fourth consecutive year of declining profit, showing that underlying profit before tax fell 26.9% to £302m ($429, €391m). Like-for-like sales excluding fuel over the full year dropped 2% while revenue edged up in the last quarter.
Morrisons' management repeated the statements it made last year, saying that the turnaround it has kicked off under new CEO David Potts is going to take time.
"The team made good progress during the year, with lower debt once again a highlight. We are on track to deliver improved future profits and returns for shareholders," the supermarket's chairman Andrew Higginson said.
The company accelerated its debt reduction plan and said it is expecting to finalise the remainder of its £1bn three-year cost savings plan in 2016 and 2017. In the "medium term", the company hopes to realise £50m-£100m in underlying pre-tax profit.
"By improving the shopping trip for customers, we have started the journey to turnaround the business and make our supermarkets strong," Potts said. "Our listening programme is informing and shaping the six priorities that are now driving the improvements that customers are noticing."
Morrisons is lagging behind its rivals in a highly competitive supermarket price war. All big four supermarkets, Tesco, Asda, Sainsbury's and Morrisons, struggle to compete with low-price competitors Lidl and Aldi.
The troubled grocer has announced store closures and the sale of its convenience store division in an effort to streamline its business. To battle the German discounters, supermarkets have taken to signing new partnerships with other companies.
On 29 February, Morrisons announced a new deal with Amazon, which could lead to even stronger competition in the UK supermarket sector. The agreement boosted the company's share price by more than 5%.
Under the terms of the deal, which will come into effect later this year, the grocer will supply fresh, frozen and non-perishable goods to Amazon Prime Now and Amazon Pantry customers. Morrisons hopes the new deal could strengthen its market position.