Asda has reported its financial performance for the year ending 31st December 2024, highlighting strategic investments in pricing, customer experience, and operational efficiency. Despite a slight decline in total revenue, the company has made significant progress in stabilising market share and improving profitability.
Financial Performance Overview
Total revenue (excluding fuel) remained relatively flat at £21.7bn, while like-for-like sales declined by 3.4%. However, adjusted EBITDA after rent grew by 5.8% to £1.14bn, driven by improved gross margins in non-food and contributions from Asda Express convenience stores acquired from EG Group.
The company’s disciplined cash management strategy yielded £0.6bn in free cashflow, enabling continued investment in value propositions like Rollback to Asda Price. Net debt remained stable at £3.8bn, with over £800m in cash on its balance sheet. Additionally, Asda successfully refinanced most of its 2025 and 2026 debt maturities, pushing the remainder into the next decade.
Strategic Pricing and Rollback Expansion
Asda has reinforced its value-driven strategy by expanding Rollback to 25% of its product range, offering an average 25% price reduction across 4,000 key items. This move has re-established Asda as the most competitively priced traditional supermarket, as evidenced by Which? comparisons.
Enhancing Customer Experience and Store Investment
A substantial investment of £43m in store hours during H2 2024 focused on replenishment and improving store standards. This resulted in increased availability and higher customer satisfaction scores. Asda also topped The Grocer’s ‘Store of the Week’ survey twice in February, equalling its total wins for 2024.
Community Initiatives and Supporting Families
Asda’s George fashion brand maintained its market leadership in schoolwear, capturing 13% of the UK market. The retailer’s ‘Cashpot for Schools’ initiative raised £5.7m, benefiting over 21,000 schools across the UK.
Project Future: Transforming Asda’s IT Infrastructure
‘Project Future,’ Europe’s largest systems implementation project, is nearing completion. This initiative involves migrating 2,500 legacy Walmart systems to Asda’s own platforms. Most of Asda’s operations, including 799 convenience locations, 85 supermarkets, 20 depots, HR, payroll, finance, CRM, and George.com, have already transitioned to the new system.
Financial Summary
| Financial Metric | FY2024 | FY2023 | YOY Change |
|---|---|---|---|
| Sales (excl. fuel) | £21.7bn | £21.9bn | -0.8% |
| Adjusted EBITDA (after rent) | £1.14bn | £1.08bn | +5.8% |
| Free Cashflow | £0.6bn | – | – |
| Net Debt | £3.8bn | £3.8bn | Stable |
| Market Share | 12.6% | 12.3% | +0.3% |
Looking Ahead
Executive Chairman Allan Leighton emphasised Asda’s commitment to regaining customer trust and enhancing the shopping experience through ongoing price investments. CFO Michael Gleeson highlighted the company’s robust financial position and continued focus on deleveraging commitments while executing a clear strategy to reset its value proposition.
As Asda progresses into 2025, its price-led strategy, digital transformation, and store investments are expected to drive sustainable growth, solidifying its competitive position in the UK grocery sector.
