Supermarket chain Asda has reported pre-tax losses of nearly £1 billion.
The figures form part of a broader financial picture in fresh accounts, showing a £989 million pre-tax loss for 2025, sliding from a £599 million loss a year earlier.
The results reflect Asda’s ongoing turnaround efforts and include a significant one-off cost of £656 million related to its IT separation from former parent company Walmart.
An Asda spokesman 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 £1.3bn in cash, £2.1 billion 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.”
Asda, the third largest supermarket in the UK, is currently in the middle of a major transformation plan, which boss Allan Leighton previously warned would impact profits.
He has set a goal to make Asda’s prices five per cent to 10 per cent lower than its competitors.
Like-for-like sales excluding fuel fell by 3.1 per cent.
Adjusted earnings dropped 33 per cent to £761 million, which the business attributed in part to investments in its Asda Price and Rollback discount programmes.
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