Resilient 2022 for Asda with strong growth in second half

Asda reported a ‘resilient’ financial performance in 2022, seeing strong growth from the second half onwards as price investments and new propositions resonated with customers.

Total sales, excluding fuel, increased by 0.1 per cent year-on-year to £20.45 billion for the year ending on 31 December 2022, with strong upturn in performance in H2, with like-for-like sales 5.1 per cent up on the prior year.

Asda has been the best performing traditional supermarket during the festive period, with sales up by 6.4 per cent year-on-year in the 12 weeks to 25 December (Kantar), and the retailer said the positive momentum continued into 2023, with February like-for-like sales 6.8 per cent up year-on-year.

Adjusted EBITDA declined 24 per cent year-on-year to £886 million, which Asda said is due to its investments to absorb cost price inflation and keep prices low.

“We took a conscious decision to support customers by investing heavily to mitigate the impact of inflation and keep prices as low as possible. Although this contributed to a decline in profitability, it was the right thing to do for our customers and will ultimately help to deliver long-term growth,” Mohsin Issa, Asda’s co-owner, said.

“As well as tackling the issues of the day, we also made good progress laying the foundations to restore Asda to the number two position in UK grocery, focusing on giving customers desirable products at affordable prices and the ability to shop with us whenever and however they like.”