Asda profits soar 24% to £1.1bn amid sales boost in FY23
For the year ending 31 December 2023, like-for-like sales (excluding fuel) rose by 5.4%, which Asda attributed to its ‘ongoing investment in value’
Asda has seen adjusted EBITDA after rent soar by 24% to £1.078bn in FY23, largely driven by like-for-like sales growth and the impact of strategic acquisitions, after the group welcomed four consecutive quarters of growth.For the year ending 31 December 2023, like-for-like sales (excluding fuel) rose by 5.4%, which Asda attributed to its “ongoing investment in value”. Total sales, excluding fuel, increased by 7.1% to £21.9bn.
It comes as the supermarket reduced prices on more than 800 popular everyday products in 2023, passing on the benefits of commodity price deflation where it occurred.
Elsewhere, the supermarket grew clothing sales by 3.4% to £1.5bn.
According to the supermarket, around half of all sales are now linked to its Asda Rewards loyalty scheme, with around six million customers using the app.
Its performance was also boosted by strategic acquisitions, as adjusted EBITDA included contributions of £27m from the former EG UK stores, based on two months trading, and £54m from former Co-op stores.
Mohsin Issa, Asda’s Co-owner, said: “Asda is a supermarket powerhouse built on rock-solid foundations – as our strong annual results and the 18m customers who shop with us every week demonstrate.
“Our strategy is all about growth and Asda increased underlying profit to more than £1bn and like-for-like sales by over 5% last year, while significantly growing free cashflow and reducing leverage. We are committed to doing the right thing for customers, colleagues and local communities – and are putting in place the strategic building blocks to set up Asda for long-term success.”
He added: “We continue to strengthen the business by expanding in the growing convenience and food-to-go sectors, leveraging our loyalty app and driving innovation in online grocery where we are the UK’s second largest supermarket.
“I would like to thank our colleagues for their hard work over the last year, serving millions of customers each week. Our recent investment in pay – a record £150m – will see Asda become the highest paying traditional supermarket in the UK and reflects how much we value the contribution of every colleague.”
