Asda posts third quarter sales growth and cuts debt
The Asda supermarket has posted a rise in third quarter sales and reduced its debt burden.
In the three months to 30 September, like-for-like sales excluding fuel increased by 2.8% year-on-year following a 3.2% uplift in like-for-like food sales. Revenue came in at £5.4 billion.
The food performance was underpinned by a strong performance in the retailer’s Just Essentials value range, where sales were up 21% compared to the same time last year. During the period, Asda lowered the prices of over 600 products by an average of 10% via two separate price drop campaigns.
Mohsin Issa, Asda’s co-owner, said: “Despite inflation easing slightly, we know that many families are still struggling, as disposable income for the average household is 10% down compared to two years ago.
“Throughout the quarter we have been focused on helping customers save money whenever they shop with us, and this remains our key focus.
“This means keeping prices low on the products they buy the most, putting money back in their pockets via the Asda Rewards app and passing on savings whenever there is an opportunity to do so.”
Meanwhile, the retailer’s clothing and merchandise sales were hit by unseasonal weather, which was the main driver in a 3.4% decline in like-for-like sales in the category.
Asda has also announced that it has repaid a £200 million loan facility used to acquire the Co-op’s convenience stores and forecourts business last year.
Michael Gleeson, Asda’s chief financial officer, said: “Asda has a sustainable capital structure, strong cash generation and clear strategy to deleverage over time, as the early repayment of the loan facility used to acquire the Co-op business demonstrates.”
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