STORY: Asda's annual earnings rose by just under a quarter.

The British supermarket group said Monday total sales went up 7.1%, and it had also cut its debt.

Its key profit measure hit $1.33 billion on total sales of about $27 billion, excluding fuel.

However, monthly industry data has shown Asda consistently underperforming bigger rivals Tesco and Sainsbury's.

Data from market researcher Kantar published last month showed the chain had a 13.8% share of Britain's grocery market.

That's down 50 basis points on the year.

Asda has been hurt by finance costs due to high levels of debt since it was bought out from Walmart control.

Its new owners are brothers Zuber and Mohsin Issa, and private equity firm TDR Capital, although the U.S. retail giant still holds a 10% stake.

Asda said its net debt at the end of last year was just under $4.7 billion, adding it was committed to cutting that number.