Asda: ‘We know what we need to do’ after sales disappoint again
Sales and revenue at Asda dropped last year, as expected, but the supermarket said it has begun to deliver on its turnaround plan.
Like-for-like sales at the supermarket giant fell by 3.4 per cent year on year, while revenue dipped 0.8 per cent to £21.7bn.
Adjusted earnings before interest, tax, depreciation and amortization (after rent) increased by 5.8 per cent to £1.14bn. The rise was driven by higher retail margins, its convenience stores and the forecourt sites acquired from EG Group, Asda said.
Asda’s executive chairman Allen Leighton, who was brought back into the business in November last year to spearhead its turnaround, said its results were “disappointing” but that the grocer has started to “make some progress”.
Leighton was CEO of the business from 1996 to 2000, during which time he was credited with a successful turnaround of the business and its acquisition by Walmart in 1999.
“Everyone is focused on making Asda the number one choice again for busy hard-working families who demand value,” Leighton said.
“This is what’s driving all of our actions across pricing, ranging, merchandising and every part of the business.”
Asda said its market share has started to stabilise, with a 0.3 per cent rise to 12.6 per cent so far in 2025. Its share of the market fell 5.8 per cent between December 2023 and 2024, according to Kantar.
Michael Gleeson, Asda’s Chief Financial Officer, said: “We know what we need to do to regain our sector leading value position, and we are executing against this.”
“Asda is a highly cash generative business and our strategy is backed by a robust balance sheet as we continue to make progress on our deleveraging commitments, having pushed all of our near-term debt maturities into the next decade.”
During the year Asda refinanced the vast majority of its 2025 and 2026 maturities of £3.2bn, including paying down £0.3bn from cash.
The grocer was bought in a £6.8bn debt-fuelled takeover in 2021 by TDR Capital and the billionaire Issa brothers and has struggled with high debt ever since.
Zuber Issa has since sold his stake to TDR. Mohsin Issa has stepped back from his leadership role on the board but has retained his 22.5 per cent stake in the business.