17th Oct 2013 08:25
LONDON (Alliance News) - Food wholesaler Booker Group PLC Thursday reported higher profits and revenue in the first half of the year, as it said the integration of its 2012 acquisition Makro is proceeding well and its strategy of broadening its product range is paying off.
Booker Group said that it is currently trading in line with management expectations, with group turnover so far in the second half ahead of the same period last year. It said that working capital levels and costs are on track. The company also declared an interim dividend of 0.45 pence per share, an 18% increase.
The food wholesaler said that its Makro turnaround plan is still on track, and expects it to deliver GBP26 million of synergies this year. Unlike Booker, Makro also offers a range of non-food items and serves retail and small-business customers, as well as the trade customers that are Booker's focus.
First half revenues for the group rose to GBP2.22billion, up 16% from GBP1.91 billion in revenues a year earlier, buoyed by a 11% increase in online sales to GBP369 million.
The group said that Booker like-for-like sales were up 2.3% in the 24 weeks ended September 13, while tobacco sales declined 2.2%, and non tobacco sales rose 5%.
It said that weak tobacco sales, and increasing competition from illicit tobacco trade, led to a 1.1% fall in like-for-like sales to retailers, to GBP1.23 billion.
On the other hand, Booker's drive into the catering market helped increase like-for-like sales to caterers by 8.7% to GBP712 million.
Booker said that fresh-food departments performed particularly well during the period, with fruit and vegetable sales up 18%.
The food wholesaler reported a 39% increase in half-year pretax profit to GBP65.1 million, from GBP46.6 million the prior year. Net profit rose to GBP53.8 million from GBP37.5 million in the same period a year earlier.
Booker Group said that it opened two more branches in India in the first half, and now has a total of six branches in the country.
The group said that it held net cash of GBP123.4 million on September 13, compared with GBP69.8 million a year earlier, which includes GBP12 million from the sale and leaseback of two of its cash and carries.
"Our plan to Focus, Drive and Broaden Booker Group is on track," Chief Executive Charles Wilson said in a statement. "The team at Makro have settled into the Group and are making a real contribution. Through working together Booker and Makro are improving the choice, price and service for our retail, catering and small business customers."
Shares in the company were up 0.75 pence Thursday morning at 141.85p per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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