Asda losses spiral to nearly £1bn after sales decline and IT upgrade failure

Earnings

โดย Yahoo Finance UK·Read original

Summary · why it matters

Asda has posted pre-tax losses of £989m for the latest financial year, up from £599m a year earlier, as sales fell 3.4% to £25.9bn. The results include £284m in losses tied to Project Future, the programme to separate its IT systems from former owner Walmart, and a £384m impairment from property revaluation. Executive chairman Allan Leighton, appointed in November 2024, has launched a price war that contributed to a 33.3% drop in earnings before tax to £761m, but the supermarket’s market share has slipped to 11.5% from 12.3% a year ago. Asda, owned by TDR Capital and the Issa brothers since 2021, said the reported loss does not reflect underlying financial strength and highlighted £1.3bn in cash and £2.1bn in total liquidity.

J Sainsbury PLC ▲

Impact on stocks 3

Electrification & Mobility▲ · 1 stocks

J Sainsbury PLC

▲ PositiveCompetitionrelevance

Asda's sales decline and market share loss may benefit rival Sainsbury's.

Artificial Intelligence▲ · 1 stocks

▲ PositiveCompetitionrelevance

Asda's struggles and market share loss could benefit Tesco.

Consumer Staples▲ · 1 stocks

Mentioned

Off-coverage companies 2

TDR Capital LLPPrivate▼ Negative

Capitalrelevance

TDR Capital is a co-owner of Asda, which reported large losses and impairment.

Asda Group LimitedPrivate± Mixed

relevance