The UK’s third biggest supermarket chain said its underlying earnings rose by 24% to £1.1 billion over 2023.
Asda has revealed its underlying earnings swelled by a quarter last year with growth in food and clothing sales.
The UK’s third-biggest supermarket chain said its underlying earnings, before additional costs like tax and interest, rose by 24% to £1.1 billion over 2023, compared with 2022.
It came as supermarket sales, excluding fuel, grew 5.4% on a like-for-like basis, which excludes the impact of new stores opening during the year.
Total sales, excluding fuel, hit nearly £22 billion during the year, as the chain said it had benefited from about six million customers now using its loyalty app to shop with the retailer.
Around half of all sales are linked to its reward programme, Asda Rewards, which it described as a “key revenue driver” for the business.
The group, which runs fashion retailer George, said clothing sales edged up by 3.4% to total £1.5 billion.
Mohsin Issa, Asda’s co-owner, said: “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.”
The publication of its annual results comes amid reports that Mr Issa’s brother, Zuber Issa, is getting ready to sell his stake in the group to private equity group TDR Capital, according to reporting in Bloomberg.
The Issa brothers joined forces with TDR to buy Asda three years ago.
