Asda, the UK’s third-largest supermarket chain, reported positive financial results for the full year ending 31 December 2023.

Asda’s adjusted EBITDA after rent increased by 24% to £1.078bn ($1.33bn), driven by like-for-like sales growth and recent acquisitions.

The company said its performance was bolstered by its emphasis on customer value. Throughout 2023, Asda held the position of the UK’s lowest-priced traditional supermarket according to key price comparison surveys.

Asda also invested in product quality, launching a budget-friendly ‘Just Essentials’ range and revamping its entire ready meals selection.

The supermarket chain made significant progress in expanding its reach through strategic acquisitions. The company acquired 116 convenience stores and development sites from the Co-op, along with 356 sites from EG Group’s UK business. These acquisitions strengthen Asda’s presence in the growing convenience and food-to-go sectors.

Asda’s financial health is reflected in its increased free cash flow (up 31% to £776m) and reduced leverage.

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This financial strength allows Asda to invest in growth initiatives, such as the rapid expansion of its Express format stores. The company has set a goal of having 500 Express stores by the end of 2024.

Asda said it prioritises digital innovation. The company’s loyalty app, Asda Rewards, has gained significant traction with over 6 million regular users and has facilitated customer savings exceeding £400m.

Asda maintained its position as the UK’s number two online grocery home shopping market throughout 2023.

The supermarket also demonstrated its commitment to employees by announcing a £150m investment in retail pay, making it the highest-paying traditional supermarket in the UK.

Asda’s 2023 results and ongoing investment position the company for future success. The company said it remains committed to growth, customer value, and its employees, with a clear vision of becoming the UK’s number two supermarket.