9th Jul 2014 07:04
LONDON (Alliance News) - UK food wholesaler Booker Group PLC Wednesday said it has started its new financial year well, with sales in the first quarter in line with expectations, and its turnaround plans for recent acquisition Makro on track.
Total sales in the 12 weeks to June 20 were up 3.8% including sales from Makro. Non-tobacco sales were up 5.4%, while tobacco sales rose 0.7%.
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 3.6%, with tobacco sales up 1.7%. Total like-for-like sales excluding Makro increased by 2.9%.
"After a good start, we anticipate that Booker Group is on course to meet expectations for the year ending 27 March 2015," said Chief Executive Charles Wilson in a statement ahead of the company's annual general meeting Wednesday.
Back in May, Booker warned that the UK food market remains very competitive and said it expects the challenging environment to persist in the coming year.
The company said Wednesday that its cash and carry division, Booker Wholesale, also had a good first quarter.
"Customer numbers were up and sales were in line with expectations. Overall, our delivered wholesale businesses had a good quarter," it said.
The company said its Makro turnaround plans are on track, with cash and profits both in line with expectations. Makro's non tobacco like-for-likes were down 12%, as the company continued to exit non-profitable and non-professional categories. The company said that sales in India "continue to make progress".
"Our plans to focus, drive and broaden Booker Group are on track. We continue to improve choice, price and service," said Wilson.
The company said its financial position remains strong with a net cash position.
Booker shares were quoted down 0.8% at the open Wednesday at 130.20 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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