Leeds-based supermarket giant Asda announced its adjusted EBITDA earnings fell 24% in 2022 to £886 million as it “invested to absorb cost price inflation and keep prices as low as possible for customers.”

Asda said total 2022 sales (excluding fuel) increased 0.1% year-on-year to £20.452 billion.

Blackburn-based billionaire brothers Mohsin and Zuber Issa and private equity firm TDR Capital completed the £6.8 billion acquisition of a majority ownership stake in Asda from Walmart Inc. in 2021.

Walmart retains an equity investment in Asda, with an ongoing commercial relationship and a seat on the board.

Mohsin Issa, Asda’s co-owner, said: “We took a conscious decision to support customers by investing heavily to mitigate the impact of inflation and keep prices as low as possible.

“Although this contributed to a decline in profitability, it was the right thing to do for our customers and will ultimately help to deliver long-term growth.

“We are pleased with the strong sales growth we saw H2, driven by investments in value and quality, and this positive momentum has continued into 2023 – with like-for-like growth of 6.8% in February.”

Asda added: “FY22 was the first full year of ownership under the Issa brothers and TDR, and despite the challenging conditions in the market, Asda delivered a number of key propositions that underpin its long term growth strategy.”