Future Of British Business
Asda Profit Slides as UK Grocer Battles Stubborn Inflation
- Earnings dropped 24% last year as rising costs hurt margins
- Asda tried to limit price increases to keep shoppers loyal
A shopper scans items at the Asda Express convenience store in London, UK.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Asda reported a steep decline in earnings, a sign of how Britain’s cost-of-living crisis is weighing on supermarket margins.
The UK’s third-largest grocer saw adjusted Ebitda drop 24% to £886 million ($1.01 billion) in 2022, according to an earnings statement Wednesday. Asda said it was due to the grocer absorbing cost increases as much as possible to retain customers.