Asda reports falling sales and profit
Asda has reported a 3.3% drop in annual sales to £21 billion while pointing to growing momentum in its turnaround efforts.
In a trading update for the 12 months to 31 December, the supermarket also reported a 33.1% decline in adjusted EBITDA to £764 million.
Subscribe to TRBAsda admitted late last year that its turnaround had been impacted by severe disruption as it completed its Project Future IT overhaul.
However, today the retailer said its Formula for Growth strategy delivered “clear” progress in it its first year. This came as it worked to re-establish itself as the UK’s lowest-priced traditional supermarket through investment, which created a 4-7% price gap against competitors.
Asda said total like-for-like sales improved from a drop of 1.6% in January to a fall of 1% in February. Sales then turned positive in March at 1.2%.
Allan Leighton, Asda’s executive chairman, said: “As we enter the second year of our turnaround, we have an improved customer offer, stable core systems, a strengthened balance sheet and a strong leadership team to deliver our Formula for Growth.
“Our progress in key areas like price, availability, and customer satisfaction is edging forwards, reflected in positive like-for-like sales growth in our stores for the last two months.
“I want to thank all our colleagues for their hard work and commitment. Their determination to make Asda better every day is what drives our progress.”
Leighton has rejected claims that businesses are boosting profits from the conflict in the Middle East as fuel prices edged higher today. He accused government ministers of having “zero credibility”, adding: “The Government strategy is called ‘Point your finger at somebody else’.”
