Asda, the UK’s third largest supermarket chain, insists its underlying business remains strong after losses climbed to almost £1 billion.
Its latest accounts show it plunged to a £989 million pre-tax loss for the year to the end of 2025 from a £599m loss a year earlier.
Total sales, including fuel, fell 3.4% to £25.9 billion during the same period. Like-for-like sales declined by 3.1%.
It has lost market share since its £6.8 billion takeover by TDR Capital and the billionaire Issa brothers in 2021.
However, the company was hit last year by an IT upgrade that disrupted product availability and dented sales.
This included a £656m one-off cost related to the group’s IT separation from former parent firm Walmart, which retains a minority stake.
It has been aggressively cutting prices to lure back shoppers under executive chairman Allan Leighton who warned in March that his plan to make Asda between 5% and 10% cheaper than rival supermarkets was likely to “materially reduce” its profits.
A spokesman for the supermarket said: “The reported loss does not reflect the underlying financial strength of the business – and continued powerful cash generation.
“Asda is supported by a strong balance sheet and capital structure, with £1.3 billion in cash, £2.1bn of total liquidity at the year end, and the majority of borrowings secured well into the next decade.
“This gives us the flexibility to continue investing in our long-term growth strategy and deliver a disciplined and sustainable turnaround.”
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