Asda profits slip by almost a quarter as sluggish sales and rising costs take their toll
Asda’s profits fell last year as subdued sales and rising costs took their toll.
In its first full year of ownership by the Issa brothers, the UK’s third-biggest supermarket chain said profits fell by almost a quarter to £886million in 2022.
Sales rose just 0.1 percent to £20.5 billion.
Asda said sales had improved significantly in the second half of the year after investing in price cuts as customers searched for bargains.
Slump: In the Issa brothers’ first full year of ownership, Asda, the UK’s third-biggest supermarket chain, said profits fell by almost a quarter to £886m in 2022
While revenue fell 9.2 percent in the first three months of 2022, it rose 5.4 percent in the fourth quarter compared to the same period last year.
Business continued to improve, with sales up 6.8 percent in February.
Mohsin Issa, who bought Asda alongside his brother Zuber and private equity backer TDR Capital in 2021, said he was “pleased with the strong revenue growth” seen since the second half of the year.
“We made a conscious choice to support our customers by investing heavily to mitigate the effects of inflation and keep prices as low as possible,” he said.
‘Although this has contributed to a decline in profitability, it was the right thing to do for customers and will ultimately help deliver long-term growth.’
https://www.dailymail.co.uk/money/markets/article-11916779/Asda-profits-slide-quarter-sluggish-sales-rising-costs-toll.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Asda profits slip by almost a quarter as sluggish sales and rising costs take their toll