Asda has reported an improvement in profits driven by a strong non-food performance headlined by clothing giant George, but sales across the group trended down.
For the 2024 financial year, Asda total revenues excluding fuel declined by £21.7bn while like-for-like sales slumped 3.4%. Group adjusted EBITDA after rent jumped by 5.8% in the year to £1.14bn.
The retailer ended the year with over £800m in cash on the balance sheet and net debt of £3.8bn.
During the period, Asda said it had made “additional investments in store hours” worth £43m to drive “improvements in availability and customer experience”. It also relaunched its Asda Rollback on 25% of its product range.
Launched at the end of January, Asda said Rollback has “re-established Asda as the best traditional supermarket for shoppers”, and said it will “add thousands more products to Rollback at regular intervals” during the year as part of a strategic shift to move “its entire product range to a new Asda Price” by the end of 2026.
It also trumpeted the performance of its fashion brand George during the period, particularly its “standout success” during the back-to-school period — when it captured 13% of the schoolwear market.
Asda executive chair Allan Leighton said: “Everyone is focused on making Asda the number one choice again for busy hard-working families who demand value. This is what’s driving all of our actions across pricing, ranging, merchandising and every part of the business.
“Following the return of Rollback in January, our price advantage has strengthened and customers’ perceptions of the value we offer are starting to improve. We will move thousands more products to Rollback at regular intervals this year.
“Looking ahead, we still have plenty of work to get our business firing on all cylinders again. While regaining customers’ trust will take time, we will undertake a substantive and well-backed programme of investment in price, availability and the shopping experience to deliver this.
“This will materially reduce our profitability this year, which we expect to reverse as our market share recovers and improves over time.”
No comments yet