Asda spills the beans on financial results

Asda has laid bare a torrid 2016 in which sales and profits slumped as the chain came out worse for wear in Britain’s supermarket wars.

The Walmart-owned firm saw overall sales drop 3.2 per cent to £21.7 billion in the year to 31 December, while pre-tax profits tumbled almost 19 per cent to £791.7 million.

Like-for-like sales slid by 5.7 per cent, compared with a year earlier, according to accounts filed at Companies House.

The figures crystallise a challenging time for the grocery giant, which has reported 11 consecutive quarters of sales declines.

“The grocery market has continued to experience low growth throughout the year and competition in the sector has remained intense.

“Our sales performance, relative to the market, was behind our expectations,” the company said.

However, Asda added that despite the disappointing results, there are signs that turnaround efforts under new boss Sean Clarke are beginning to bear fruit.

The group pointed to the final quarter of 2016, when it said improvements in ranges and price cuts were paying off.

Clarke, who took up the reins last summer after being parachuted in to replace previous boss Andy Clarke, has slashed the prices of everyday items as he attempts to arrest falling sales.

The chain reported a 2.8 per cent dip in like-for-likes sales in its first quarter of this year, a slight improvement on the previous period, when sales fell 2.9 per cent. Last August, it posted its worst ever quarterly sales fall of 7.5 per cent. 0 Boss Sean Clarke sees signs of improvement