UK supermarket Asda has published its full year results for the period ending 31st December 2023, boasting a 24% increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA).

The retailer grew like-for-like sales (excluding fuel) by 5.4%, while delivering a 24% increase in adjusted EBITDA after rent to £1 billion driven by like-for-like sales growth. Total sales (excluding fuel) increased by 7.1% to reach £21.8 billion.

Asda reported that around six million of its customers regularly used Asda Rewards, with half of all sales now linked to the app. During the year, Asda also reduced prices on more than 800 popular products and launched thousands of new or improved food lines.

Asda expands convenience and food-to-go sectors

Mohsin Issa, Asda’s co-owner, said: “Asda is a supermarket powerhouse built on rock solid foundations – as our strong annual results and the 18 million customers who shop with us every week demonstrate. Our strategy is all about growth and Asda increased underlying profit to more than £1 billion 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.

“As well as investing in price to maintain our position as the cheapest traditional supermarket, we continued to invest in further enhancing the quality of our own products, building on the earlier successful launch of the budget-friendly Just Essentials brand with a significant own-label transformation programme. This saw us launch thousands of new and improved food lines to drive quality perception among consumers, including a refresh of our entire ready meals range.”

Issa 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 out colleagues for their hard work over the last year, serving millions of customers each week. Our recent investment in pay – a record £150 million – will see Asda become the highest paying traditional supermarket in the UK and reflects how much we value the contribution of every colleague.”