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LONDON, June 10 (Reuters) - British supermarket group Asda,
bought by Zuber and Mohsin Issa and private equity group TDR
Capital from Walmart in February, said on Thursday
underlying sales growth accelerated in its latest quarter.
The group said like-for-like sales, excluding fuel, rose
7.3% year-on-year in its first quarter to March 31, versus
growth of 5.1% in the previous quarter.
The growth was driven by non-food categories and online
shopping during a third period of national lockdown measures to
stem the COVID-19 virus, which included the closure of
non-essential shops.
Like-for-like clothing sales increased by 31% and general
merchandise sales by 39%, with a rise in demand for outdoor
furniture, BBQs and garden accessories. Total digital sales rose
88%.
"Whilst the closure of non-essential retail during the first
quarter helped stimulate demand, our constant focus on keeping
prices low, providing great quality products and developing
in-store partnerships with ... brands such as B&Q, The
Entertainer and Greggs, continues to resonate with
customers," said CEO Roger Burnley, who is leaving the group
next year.
Asda also reported results for 2020, when it was under
Walmart's full ownership.
Total sales, excluding fuel, increased 3.6% to 20.2 billion
pounds ($28.6 billion), with like-for-like sales up 3.5%.
However, operating profit fell 16.7% to 486.5 million
pounds, mainly due to COVID-related costs.
All three of Asda's main British rivals - Tesco,
Sainsbury's and Morrisons have reported big
annual profit falls.
Asda's accounts also showed that dividend payments were made
to Walmart during the year comprising 1.65 billion pounds in
cash and a dividend in specie (or reconciliation of
inter-company borrowings) of 1.27 billion pounds.
The Issas/TDR purchase of Asda is still subject to final
regulatory approval by Britain's competition regulator. Walmart
retains a minority stake.
($1 = 0.7060 pounds)
(Reporting by James Davey;Editing by Elaine Hardcastle)
