Revenue Holds Steady as Market Share Stabilizes
Asda has released its financial results for FY24, showing steady performance despite a competitive market.
- Total revenue: £21.7bn (excluding fuel), a 0.8% decline from last year.
- Like-for-like sales: Down 3.4%.
- Adjusted EBITDA after rent: Grew 5.8% to £1.14bn, driven by strong margins in non-food and a full year of profit from Asda Express stores.
- Market share: Increased 0.3% to 12.6% since December (Kantar data).
Stronger Balance Sheet with Reduced Debt
- Net debt: £3.8bn, with over £800m in cash on hand.
- Leverage: Dropped to 2.9x from 3.0x in FY23.
- Cashflow: £0.6bn generated through disciplined cash management.
- Debt refinancing: Asda refinanced £3.2bn in maturities, pushing repayments into the next decade.
Rollback to Asda Price Expands
In January, Asda relaunched its iconic Rollback initiative, reducing prices on 4,000 products by an average of 25%. The move has helped position Asda as the best-value traditional supermarket, according to Which?’s February basket comparison.
- Rollback now covers 25% of Asda’s range.
- More products will be added throughout 2024.
- Goal: Shift Asda’s full product lineup to a permanent low ‘Asda Price’ by 2026.
Investments in Stores and Customer Experience
To improve availability and service, Asda invested £43m in additional store hours during H2 2024.
- Stock levels and store standards improved.
- Customer satisfaction scores increased.
- Asda topped The Grocer’s ‘Store of the Week’ survey twice in February.
Supporting Families and Local Communities
Asda’s George brand remained the top choice for young families, capturing 13% of the schoolwear market with its Back to School range.
The supermarket also launched ‘Cashpot for Schools’, allowing customers to donate 0.5% of their shopping value to local primary schools via the Asda Rewards app.
- Total raised: £5.7m.
- Over 21,000 schools received donations ranging from £100 to £4,500.
FY24 Financial Summary
| Metric | FY24 | FY23 | Change |
|---|---|---|---|
| Sales (excluding fuel) | £21.7bn | £21.9bn | -0.8% |
| Adjusted EBITDA (after rent) | £1.14bn | £1.08bn | +5.8% |
Looking Ahead
Asda continues to focus on lower prices, store improvements, and community support. With a solid financial foundation and Rollback expanding, the supermarket aims to keep delivering value for customers in 2024 and beyond.
