Asda has warned that its profits for the upcoming year will take a hit as it ramps up spending on its turnaround efforts.

Chair Allan Leighton said the supermarket chain will be undertaking a “substantive and well backed programme of investment in price, availability and the shopping experience” in the year ahead.

He cautioned the spend will “materially reduce our profit in this year as we start to rebuild and reset the business”.

“I look at this as an investment warning rather than a profit warning,” he added.

Leighton’s comments come as the grocer reported its adjusted EBITDA rose £21.7bn in the year to 31st December 2024, despite sales excluding fuel slipping 0.8% and dropping 3.4% on a like-for-like basis.

During the second half of the year, Asda made two investments totalling £43m in store hours, focused on replenishment and improving store standards.

Leighton continued: “Everyone is focused on making Asda the number one choice again for busy hard-working families who demand value. This is what’s driving all of our actions across pricing, ranging, merchandising and every part of the business.

“Looking ahead we still have plenty of work to get our business firing on all cylinders again,” he said.

Asda reintroduced its Rollback proposition in January, which Leighton said has strengthened the supermarket’s price advantage “and customers’ perceptions of the value we offer is starting to improve”.

The chair said the business will move thousands more products to Rollback at regular intervals throughout the year.

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