18th Sep 2014 07:26
LONDON (Alliance News) - UK food wholesaler Booker Group PLC Thursday said sales inched up slightly in the second quarter of its financial year, helped by non-tobacco sales, and said its turnaround plans for the Makro business remain on track and on budget.
Total sales in the 12 weeks to September 12 were up 0.1% including sales from Makro. Non-tobacco sales were up 0.8%, while tobacco sales declined 1.4%.
Makro is a Netherlands-based wholesale business which Booker acquired in July 2012.
Booker's non-tobacco sales on a like-for-like basis excluding Makro, were up 3.1%, while tobacco sales declined by 0.5%. Total like-for-like sales excluding Makro increased by 1.8%.
"Booker Group continues to make good progress... our plans to focus, drive and broaden Booker Group are on track. We continue to improve choice, price and service to become the best supplier to caterers, retailers and small business in the UK," Chief Executive Charles Wilson said in a statement.
The group said its Makro turnaround planes remain on track, with cash and profits both in line with its expectations.
"We have converted four Makro outlets to the new, improved format and will complete a further 4 in the second half. Sales in India are continuing to make progress," the company said.
Makro's non tobacco like-for-likes were down 10.8% in the 12 weeks, and down 11.4% in the first-half, and the group continued to exit non-profitable, non-professional categories.
The group said that total sales in the first-half ended September 12, including Makro, rose by 1.9% on the same period last year. Booker like-for-likes, excluding Makro, were 2.4% higher, with non-tobacco like-for-like sales up 3.4%.
The group said its financial position remains strong, and currently has a net cash position of GBP107 million.
Booker said its will release its interim results on October 16.
Shares in Booker were up 3.2% to 119.8 pence on Thursday, putting it among the five best performers on the FTSE 250.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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