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(Sharecast News) - Supermarket chain Asda slumped to a near 1bn loss last year, it was reported on Friday, as it looks to cut prices and lure shoppers back.
The grocer, which is majority owned by private equity firm TDR Capital, has been steadily losing market share, hit by stiff competition from bigger rivals Tesco and J Sainsbury as well as discounters Lidl and Aldi.
At the end of 2024 Allan Leighton returned as executive chair, more than two decades after serving as chief executive, and set about turning the business around. Part of that includes slashing prices, though Leighton warned last year it would take time and dent profits in the short term.
According to Reuters, citing the most recent annual accounts, the pre-tax loss for 2025 widened to 989m from 599m a year earlier. Total sales, which include fuel, eased 3.4% to 25.9bn. The loss included 656m of one-off costs.
Net debt stood at 3.1bn, down 500m year-on-year.
A company spokesperson told Reuters: "The reported loss does not reflect the underlying financial strength of the business and powerful cash generation."
Founded in 1949, Asda was taken private in 1999 when US retail giant Walmart acquired it in a 6.7bn deal. The billionaire Issa brothers and TDR bought the business from Walmart in 2021, although the chain retains a 10% holding.
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