ASDA - comment

ASDA’s numbers on Friday will have seen the bonds softer, but the slowing pace of revenue decline is supportive. We did not expect the recovery plan to reverse the top-line decline (and begin EBITDA recovery) until 2027, so we are not surprised. Revenue of £5bn came in 3% above our forecast, but EBITDA of €135m was below our £150m expectation. Given UK food inflation of 3.7% and revenue down by 1.3%, volumes continue to fall at ASDA. We continue to see the company as having adequate liquidity and access to additional debt if required.