Asda sales up by £1 billion in year to December 2012

Asda, the UK arm of Walmart, added £1bn in sales last year, according to accounts filed with Companies House.

Britain’s second biggest grocer after Tesco by market share said sales rose from £21.8bn to £22.8bn in the year to December 31 2012.

Operating profit slipped from £845.9m to £840.9m, although Asda said it rose 7.6 per cent excluding a number of one-off benefits in 2011 after it controlled costs.

Sales from Asda stores open at least a year rose 1 per cent, excluding fuel and VAT in the year to December 31 2012, compared with the year earlier period.

No dividend was paid to parent Walmart. Asda paid £185.3m in “technical assistance, services and royalties” to Walmart, compared with £144.5m in the year earlier, according to the accounts.

The total tax charge for the year fell from £194.4m to £164.4m, according to the accounts, although Asda said the tax it paid actually rose from £163m in 2011 to £176m in 2012. Last year, Andy Clarke, chief executive, said Asda paid a significant amount of corporation tax and would continue to do so.

The accounts also showed that Asda added 23 new stores during the year, amounting to 640,000 sq ft, including 13 supermarkets, five superstores and five home and clothing stores.

Asda said its multi-channel business saw double-digit sales growth in 2012.

Asda’s accounts come a day after Tesco, its bigger rival, said its half-year profits after tax had fallen by a third after a collapse in profit in central Europe and deals to exit the US and partially leave China.

Source : Andrea Felsted - Financial Times
www.ft.com