ASDA - comment

The latest price cuts announced will have been part of the plan rather than an additional tranche. Company-calculated leverage at FY24 was 2.9x, including supply chain finance and leases our leverage figure was 3.5x. We expect leverage of >4.0x in FY 25. The impact of the costs on margins will be immediate, but the benefit will not come through for 18 months. ASDA has pushed most of its maturities beyond 2030, so it has time to wait for its margins to recover. There will be pressure on suppliers (including Boparan) to bear some of the burden. ASDA is already cheaper than Morrisons, and there will be some friction. However, the discounters have been the primary source of market share loss.

https://www.retailgazette.co.uk/blog/2025/03/asda-price-war/