Asda’s EG and Co-op acquisitions drive £1bn earnings

22nd April 2024 | Jack Oliver

Asda’s acquisitions of former EG Group and Co-op stores helped drive an adjusted EBITDA after rent of over £1bn in 2023.

The supermarket retailer said the £1.078bn adjusted EBITDA figure – a year-on-year increase of 24% – was also driven by an increase in like-for-like sales growth (excluding fuel) of 5.4%.

Asda acquired 132 sites from the Co-op in autumn 2022, and completed on a £2.07bn purchase of petrol forecourt group EG Group’s UK business last year.

The retailer said the former EG Group stores contributed £27m over a two-month period, whilst the former Co-op stores contributed £54m.

Asda has now opened 479 ‘Express’ sites, compared to just three at the end of September 2023, enabling the retailer to reach 1,000 UK stores for the first time in its history.

The retailer added that it is on track to have 500 convenience stores by the end of the year, bolstered by new standalone openings.

Mohsin Issa, Asda co-owner, said: “Asda is a supermarket powerhouse built on rock-solid foundations – as our strong annual results and the 18m customers who shop with us every week demonstrate. Our strategy is all about growth and Asda increased underlying profit to more than £1bn and like-for-like sales by over 5% last year, while significantly growing free cashflow and reducing leverage. We are committed to doing the right thing for customers, colleagues and local communities – and are putting in place the strategic building blocks to set up Asda for long-term success.”


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