The new €700m 8% 2031 SSNs will increase the cash interest bill by €33m. However, the new issue also pushes out ASDA’s next
Read MoreThe new €595m 2031 SSNs will increase ASDA’s interest bill by around £40m, a manageable amount. The refinance of the 2026 SSNs pushes the
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The pace of decline at ASDA is slowing, but there is a long way to go for ASDA. The response from competitors to price rollbacks has been
Read MoreThe price cuts at ASDA are not yet helping the top line, but it was always going to take time to work. The -3.2% revenue for ASDA may
Read MoreThe sale and leaseback is cheaper than bank debt or issuing SSNs. ASDA’s 2030 SSN yields around 9.5%, whereas a sale and leaseback deal will be
Read MoreAde McKeon only joined in January, so it seems likely that Allan Leighton is difficult to work under. The senior staff turnover at
Read MoreAllan Leighton has decided not to wear the Chief Customer Officer hat, and ASDA has appointed Rachel Eyre from Morrisons. Eyre has the
Read MoreASDA is succeeding in positioning itself as the cheapest supermarket, but it will take time for the lower prices to translate into
Read MoreASDA is calibrating its Roll Back programme by quietly removing some products and increasing the number of items that are discounted. Rational behaviour will
Read MoreNothing about increased price competition is good, although all parties are acting rationally for now. The price cuts launched
Read MoreThe price drops at ASDA are impacting the top line, but volumes will take time to rise. The figures are likely to be similar over the next
Read MoreIt is not surprising that an IT project of this size has overrun and cost more than expected. The issues have contributed to the unavailability of
Read MoreThe presence of Allan Leighton, who is stamping his plan on ASDA, will reduce the role of chief customer officer. Allan Leighton's importance to ASDA is
Read MoreThe 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
Read MoreASDA’s price cuts were bound to draw a response from competitors. We don’t expect top-line stabilisation this year, and management has
Read MoreSourcing some of its chicken from Germany is more about ASDA’s lower prices campaign than it is about supply chain challenges. It sends a warning shot to
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The Q4/FY numbers were as weak as expected. Allan Leighton plans to return ASDA to its position as the cheapest of the Big 4. The price drops and additional
Read MoreThe job cuts are mainly contractors hired for the IT project that is now ending. This is more natura
Read MoreA fall in sales is an unpleasant surprise, but we expect at least part of the 5% drop in February was a strategy of lower prices to stabilise market share over the rest of the year. We expect that
Read MoreCancelling store manager bonuses may hurt morale at ASDA, but Allan Leighton needs to respond to the poor performance in H2 2024. Our view on the credit is
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