31st Mar 2016 06:58
LONDON (Alliance News) - Booker Group PLC on Thursday reported growth in total sales in the fourth quarter of its financial year and in the year as a whole, and said profit remains in line with expectations, although like-for-like sales were hit by price deflation and weak consumer demand.
The food wholesaler and convenience store operator said total sales, including the Budgens and Londis businesses it bought last year, grew by 11% year-on-year in the 12 weeks to March 25. Within this, tobacco sales were up by 7.7% and non-tobacco sales were up by 12%. In the full year to the same date, total sales increased by 5.0% to GBP5.0 billion.
Excluding Budgens and Londis, like-for-like sales declined by 2.5% in the quarter, with tobacco like-for-likes down by 6.1% and non-tobacco down by 0.7%. In the full year, like-for-like sales decreased by 1.9%.
Booker said like-for-like sales were hit by deflation in food prices and weak consumer demand, while tobacco continued to suffer from the ban on small stores displaying tobacco products.
Budgens and Londis are integrating well, however, while wholesaler Makro had a good quarter for customer numbers, customer satisfaction and cash profit, Booker said.
Booker said profit for the full year remains in line with expectations. It will release its full-year results on May 19.
"Overall, 2015/16 was a good year. Customer satisfaction scores were strong, sales and profits were the best we have ever achieved. We made good progress on the integration of Londis and Budgens. We continue to improve choice, prices and service to our customers. Booker Group remains on track to focus, drive and broaden the business," Chief Executive Charles Wilson said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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