Asda posted a slide in profits last year as subdued sales and rising costs took a toll.
In the first full year of ownership by the Issa brothers, the UK’s third-largest supermarket chain said profits fell almost a quarter to £886million in 2022.
Sales were up just 0.1 per cent to £20.5billion.
Asda said sales improved significantly in the latter half of the year after it invested in price cuts as customers sought bargains.
Slump: In the first full year of ownership by the Issa brothers, Asda, which is the UK’s third largest supermarket chain, said profits fell by almost a quarter to £886m in 2022
While sales fell 9.2 per cent in the first three months of 2022, by the fourth quarter they were up 5.4 per cent on the same period a year earlier.
Business has continued to improve, with sales up 6.8 per cent in February.
Mohsin Issa, who bought Asda with his brother Zuber alongside private equity backers TDR Capital in 2021, said he was ‘pleased with the strong sales growth’ seen since the second half.
‘We took a conscious decision to support customers by investing heavily to mitigate the impact of inflation and keep prices as low as possible,’ he said.
‘Although this contributed to a decline in profitability, it was the right thing to do for customers and will ultimately help deliver long-term growth.’
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