Bellis Finco (ASDA) Q4 2025 earnings summary

Executive summary

• Revenue declined 3.3% year-over-year to £25,878m, with ex-fuel revenue at £20,997m, impacted by technology transition and market headwinds.

• Operating loss increased to £351m (FY24: £44m), driven by margin investment, higher employment costs, and Project Future disruption.

• Net loss widened to £716m from £487m, reflecting higher interest costs and impairment charges.

• Free Operating Cash Flow remained strong at £363m, despite lower EBITDA and higher exceptional costs.

• Significant investments made in technology, store refresh, and colleague pay to support long-term growth.

Financial highlights

• Revenue: £25,878m (down from £26,847m); ex-fuel revenue: £20,997m (down from £21,713m).

• Adjusted EBITDA: £761m (FY24: £1,141m), reflecting price investment and system transition costs.

• Operating loss: £351m (FY24: £44m); net loss: £716m (FY24: £487m).

• Capital expenditure: £298m (FY24: £366m), with 15% allocated to Project Future IT separation.

• Net debt (excl. leases): £3,110m; pro forma adjusted leverage: 4.0x (up from 2.9x).

Outlook and guidance

• UK grocery market remains highly competitive amid macroeconomic pressures and fragile consumer confidence.

• Focus remains on value leadership, expanding Rollback and Asda Price, and growing the Asda Express convenience estate.

• Online and convenience channels expected to outperform, with continued investment in digital and smaller formats.

• No material post-balance sheet events requiring disclosure.