Asda has returned to profit, figures out tomorrow will show.
The supermarket chain is set to report a small pre-tax surplus after losing £74million in 2022.
The news comes as one of the Issa brothers who backed Asda’s debt-fuelled buy-out is about to sell his stake to private equity group TDR Capital.
Supermarket back in profit: Asda has returned to the black, helped by the launch of a loyalty app and a strong performance from clothing range George
Zuber Issa is said to be close to offloading his 22.5 per cent holding, which would give TDR majority control of Britain’s third-largest food retailer.
He and his brother Mohsin joined forces with TDR to buy Asda for £6.8billion three years ago from Walmart.
Surging interest rates pushed up the cost of servicing Asda’s debts while runaway inflation saw food prices rocket, hitting cash-strapped shoppers and the supermarket’s bottom line.
But Asda has returned to the black, helped by the launch of a loyalty app and a strong performance from clothing range George. Total sales excluding fuel rose by 7 per cent to £21.9billion, or by 5.4 per cent on a like-for-like basis.
Net debt has also fallen from £4.2billion as strong cash flow offset higher interest payments.
The results are a boost for the brothers who have denied talk of a rift between them. News that TDR was poised to take control of Asda was reported by Bloomberg.
Asda declined to comment.
Read More: World News | Entertainment News | Celeb News
Mail Online
