The group, which is celebrating its 65th anniversary, said trading profits at its travel business rose more than a quarter - up 26.5% to £17.2m as its tour operator saw passenger numbers rise 10% to 189,000.
Group-wide pre-tax profits jumped to £176.2m in the year to 31 January from £113.8m, although the previous year's results were hit by £50m in costs from its 2014 stock market flotation and other debt and borrowing costs.
On an underlying basis, group earnings increased 5% to £238.8m as Saga also grew profits across its Saga Services insurance businesses.
Lance Batchelor, Saga group chief executive, said the company made "significant progress" over the past year.
He added: "I look ahead to the next period for Saga with a great deal of confidence.
"The year ahead will see a renewed focus on our customers and further developing the Saga brand."
Its travel business notched up an 11% rise in revenues to £423.1m, although its cruise ship load factor - a key measure of how well it fills its ships - edged lower to 84.4% from 84.9% the previous year.
Saga's insurance businesses also fared well, with motor profits up 17.8% to £118.3m as it benefited from rising premiums, which picked up pace at the end of 2015.
It also grew motor policies by 3.1% to 1.2 million.
Premiums fell in its home insurance business amid a "highly competitive" market, but this was offset by a 2.3% rise in policy numbers, which helped profits rise 3.2% to £64.1m.