UK supermarket Asda has revealed that its total revenue declined by 0.8% in the year to 31st December 2024.
The supermarket’s total revenue declined by 0.8% to £21.7 billion in FY24, while like-for-like sales (excluding fuel) were lower by 3.4%.
Asda grew its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) by 5.8% to £1.14 billion in FY24, which it said was driven by improved gross margins.
Allan Leighton, Asda’s executive chair, said: “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.
“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.
“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.”
Rollback to Asda Price
Since the year end, Asda has brought back its Rollback to Asda Price proposition. Launched at the end of January, with an average reduction of 25% across 4,000 popular products, Rollback has now been expanded to roughly a quarter of Asda’s entire range.
Asda will add thousands more products to Rollback at regular intervals during the year as part of its shift to move its entire product range to a new low ‘Asda Price’ by the end of 2026.
Michael Gleeson, Asda’s chief financial officer, said: “We have a clear plan to reset our value offering and meet the demands of our current and future customers – as proven by our improving satisfaction scores.
“While it is encouraging that our market share performance is stabilising, we know what we need to do to regain our sector leading value position, and we are executing against this. Asda is a highly cash generative business and our strategy is backed by a robust balance sheet as we continue to make progress on our deleveraging commitments, having pushed all of our near-term debt maturities into the next decade.”
