Supermarket chain Asda’s total sales excluding fuel rose by 7.1% year to year to £21.9 billion in 2023.
Adjusted earnings increased 24% to slightly over £1 billion while underlying free cash flow was up 31% to £776 million.
Michael Gleeson, Asda’s chief financial officer, attributed the solid results to the success of Asda’s rewards programme.
He said: “Around half of all sales are now linked to Asda Rewards and around six million customers use the app – making it a vital tool for them to manage their household budgets as well as being a key revenue driver for the business.
“The shareholders have also invested to fill the previous strategic gaps in the business, including acquiring the Co-op and EG UK convenience stores – which have already boosted annual earnings and helped grow Asda to more than 1,000 sites for the first time."
Asda, which is co-owned by the Issa brothers and private equity firm TDR Capital, had already disclosed its unaudited financial results to lenders behind closed doors in March after delays due to the group switching auditors.
According to sources, the group’s earnings were impacted by £441 million of finance costs on its £4.2 billion debt pile.
Today’s trading update showed a net debt position of £3.8 billion.