British supermarket chain Asda has reported a slight decline in total revenue for the year ended 31 December 2024, with figures falling from £21.9bn in fiscal 2023 to £21.7bn ($28.05bn).
Despite this decrease, the retailer saw its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) after rent rise by 5.8% to reach £1.14bn.
Asda attributed the growth to better gross margins, especially in the non-food sector, showcasing the strength of its George clothing line and incorporating a full year of profits from the 356 Asda Express convenience stores and forecourt sites acquired from EG Group.
During the fiscal year, the retailer’s like-for-like sales, excluding fuel, were down by 3.4% and net debt remained stable at £3.8bn by year-end.
Asda executive chairman Allan Leighton stated: “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.”
The supermarket chain has also refinanced a significant portion of its debt maturities due in 2025 and 2026, totalling £3.2bn, even paying down £0.3bn from cash reserves. The strategic move extends all remaining maturities into the next decade.
In January 2025, Asda has revitalised its Rollback to Asda Price initiative, offering an average price reduction of 25% across 4,000 popular products.
The programme has been expanded to encompass a quarter of Asda’s entire product range and will continue to grow throughout 2025.
As part of its strategy to transition its entire product range to a new low Asda Price by the end of 2026, thousands more products will join the Rollback roster at regular intervals.
Asda also invested an extra £43m in store hours during the second half of 2024 to enhance replenishment processes and improve overall store standards.
In January 2025, the retailer unveiled the Big Jan Price Drop, slashing the cost of thousands of frequently purchased items.
“Following the return of Rollback in January, our price advantage has strengthened and customers’ perceptions of the value we offer is starting to improve. We will move thousands more products to Rollback at regular intervals this year,” Leighton added.
Asda has also issued profit warning amid a strategic shift to rebuild customer trust.
Leighton stated: “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.”
