UK supermarket operator Asda has cracked the  £1 billion profit ceiling for the first time.

Asda, owned by US global retail powerhouse Wal Mart stores, says sales fell by 0.4 per cent, following a two per cent increase in the previous year. There was a slight slip in its market share as Asda, along with rivals Tesco and Sainsbury, all shed varying degrees of share to German discount rivals Aldi and Lidl.

Finance director Alex Russo said Asda finished the financial year with a balance sheet it believed is stronger that those of its UK supermarket rivals. The company is also proud that its profit levels remained stable despite a small sales decline and tough competition.