Core Insights - Asda reported "clear progress" in its FY25 trading update, highlighting the success of its Formula for Growth plan [1] - The retailer's non-grocery divisions now account for 47% of total revenue, with significant performance in George and pharmacy [1] - Group sales (excluding fuel) decreased by 3.3% year on year to £21.0 billion, while like-for-like sales (ex-fuel) improved from -3.4% in FY2024 to 3.1% in FY2025 [1] Financial Performance - Adjusted EBITDA (after rent) fell by 33.1% to £764 million, while net debt was reduced by £500 million [2] - Asda ended the year with £1.3 billion in cash and £2.1 billion in total liquidity, attributed to disciplined cash management [2] Operational Developments - The first year of the Formula for Growth plan showed improvements in pricing, availability, systems, and customer satisfaction, with a reported 4-7% price gap versus competitors [3] - Availability reached an eight-year high of 95% following the Project Future systems changeover [3] Sales Trends - Early 2026 trading showed positive momentum, with total like-for-like sales improving from 1.6% in January to 1.2% in March, indicating growth in in-store sales for the last two months [4] Strategic Outlook - Asda's leadership emphasized an improved customer offer, stable core systems, and a strengthened balance sheet as key components for the second year of the turnaround [5] - The company aims to continue building sales momentum through disciplined cash management and operational stabilization [5]