Asda has reported a rise in annual profits as improvement initiatives at the Walmart-owned grocer bore fruit.

Statutory accounts for Asda Group’s last financial year showed operating profit up 9.2% to £803.2m on sales 3.1% ahead to £22.92bn.

Like-for-likes, excluding fuel and VAT, advanced 1.6% in the period to December 31, 2018, when net cashflow from operating activities was £1.29bn.

The figures cover the performance of Asda’s stores, distribution centres and online operations including food, clothing and general merchandise.

Asda, which parent Walmart may float after the collapse of a planned merger with Sainsbury’s, said growth had been driventhrough a continued focus on targeted price investments, further development in own-brand product quality and range and improved availability, particularly in fresh”.

The grocer reported that online sales rose ahead of the market over the year, “following developments to the website, mobile and tablet apps”.

The new year has been tougher for Asda and the grocery retail industry more widely and last month Asda reported a 0.3% slip in like-for-likes in the first half of 2019.