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* First quarter 2021 like-for-like sales up 7.3%
* Outcome driven by non-food, online shopping
* 2020 operating profit down 16.7%
* Walmart was paid nearly 3 bln pounds in dividends
* Majority stake sold to Issa bros/TDR in February
(Recasts, adds details)
LONDON, June 10 (Reuters) - British supermarket group Asda
on Thursday reported an acceleration in underlying sales growth
in its latest quarter and said Walmart was paid nearly 3
billion pounds ($4.3 billion) in dividends before selling most
of the business.
Zuber and Mohsin Issa and private equity group TDR Capital
completed their purchase of a majority stake in Asda from
Walmart in February in a deal valuing the chain at 6.8 billion
pounds.
The transaction, which sees Walmart retain a minority stake,
is still subject to final regulatory approval by Britain's
competition regulator.
Asda 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 pandemic, 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.
Burnley said there are signs Asda customers are feeling much
more optimistic about the future, noting almost 60% of those it
recently surveyed said they are looking forward to a summer of
socialising.
Asda also reported results for 2020, when it was under
Walmart's full ownership.
They 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.
Total sales, excluding fuel, increased 3.6% to 20.3 billion
pounds, 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 also reported
big annual profit falls.
($1 = 0.7060 pounds)
(Reporting by James Davey; Editing by Elaine Hardcastle and
Jane Merriman)
