Last year, the renowned British supermarket Asda witnessed a 25% growth in its underlying profit. Asda disclosed that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023 reached £1.078 billion, with total sales, excluding fuel, rising by 7% to £21.9 billion. Comparable sales experienced a 5.4% increase.
Around half of the sales were attributed to its membership rewards program, Asda Rewards, which the company labels as a “key revenue driver” in the retail sector, boasting approximately 6 million app users. Asda noted that customers positively responded to its sustained investment in value during last year’s cost of living crisis, particularly evident in the significant price reductions on over 800 popular everyday items in 2023.
The company’s adjusted EBITDA encompasses £27 million from its acquisition of former EG UK stores and £54 million from former Co-op stores, showcasing the strategic value of acquiring these businesses in the burgeoning convenience and food delivery sectors.
Mohsin Issa, Asda’s co-owner, emphasized their commitment to doing right by customers, colleagues, and local communities, while laying down the strategic groundwork for Asda’s long-term success. He further stated, “We are further strengthening our foothold by expanding into the thriving convenience and food delivery sectors, leveraging our loyalty app, and spearheading innovation in online grocery shopping.
Asda proudly holds the position of the UK’s second-largest supermarket.”