- Supermarket published Statutory Accounts for year to 31st December 2016
- Like for like sales in the period declined 5.7%
- Underlying operating profit decreased by 11.5%
- Operating cash flow increased 8.0%
Supermarket Asda has today published its Annual Statutory Accounts for the financial year to 31st December 2016 through Companies House.
The accounts for Asda Group Limited, which includes the financial activities of all Asda’s stores, distribution and online operations including food, clothing, general merchandise and fuel show that in the last financial year the supermarket’s like for like sales decreased by 5.7%, (compared to 4.7% in 2015) whilst underlying operating profit decreased by 11.5% (compared to 1.5% in 2015). The supermarket has also reported an operating cash flow of £1,412.6m – an increase of 8.0% on the prior year.
In a strategic report prefacing the accounts, it is noted that in the financial year the supermarket focussed on improving its performance through strengthening its price proposition, developing a ‘trusted’ online offer and delivering a low cost operating model.
Whilst the report notes that performance was ‘behind expectations’ in the year, it does pull out an improvement in the fourth quarter of the year following strategic changes to ranges and investment in price and service.
Later this month Walmart will report its earnings for the second quarter of 2017, including Asda. In May 2017, Asda reported a 2.8% decline in like for like sales (ex pet) for the first quarter of the year – a further improvement on its fourth quarter performance of -2.9%.
[In a statement on Asda’s Q1 performance, Asda CEO and President Sean Clarke, who took the helm at Asda in July 2016 noted that he was pleased with the “continued momentum” in the business and that Asda was “delivering more consistently for our customers, particularly in fresh food, service and availability - both in stores and online”. He also stated that despite the retailers improved performance they were “in no way complacent” and “there is still much for us to do.”
A full copy of Asda Group Limited Statutory Accounts can be found at Companies House: https://beta.companieshouse.gov.uk/company/01396513/filing-history