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Asda (ASDA) investor relations material
Asda Q4 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
FY23 marked strong sales and profitability growth, with revenue up 4.7% to £25.6bn and net profit of £195m, reversing a £354m loss in FY22.
Major acquisitions of Arthur Foodstores Ltd and Euro Garages (Jersey) Ltd expanded the convenience and fuel retail footprint, adding nearly 500 stores in six months.
Underlying free cash flow rose 31% to £776m, supporting debt repayment and deleveraging.
Adjusted EBITDA increased 24% to £1,078m, with pro forma EBITDA at £1,264m.
Financial highlights
Revenue ex-fuel grew 7.1% to £21.9bn; like-for-like sales ex-fuel up 5.4%.
Operating profit pre-non-underlying items was £637m (FY22: £425m); post-non-underlying items, £569m (FY22: -£141m).
Adjusted EBITDA: £1,078m (FY22: £867m); Pro Forma EBITDA: £1,264m (FY22: £943m).
Net debt (excl. leases): £3,831m; leverage reduced to 3.0x from 3.9x.
Capital expenditure: £336m, with 38% on growth initiatives and 11% on IT separation (Project Future).
Underlying free cash flow: £776m (FY22: £591m).
Outlook and guidance
UK grocery and non-food markets expected to remain resilient in 2024, with inflation moderating but cost pressures persisting.
Focus remains on value, convenience expansion, and regaining number two market share.
Announced syndication of a new €900m term loan B and extension of revolving credit facilities in April 2024.
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