Booker said it is on course to meet expectations for the year

Booker said it is on course to meet expectations for the year

Booker CEO Charles Wilson said the UK wholesale and c-store retailer had made "good progress" in its first quarter.

Sales, including the contribution of the Makro stores Booker acquired from Germany's Metro Group earlier this year, were up 13.6% in the three months to 21 June.

Booker's non tobacco like-for-likes were up 3.1%, despite last year having a Diamond Jubilee and better Easter weather, the retailer said today (10 July).

The company said it is on course to meet expectations for the year ending 28 March 2014.

"Booker Group continues to make good progress," Wilson said. "Our plans for bringing Booker and Makro together are on track. Booker and Makro are continuing to improve choice, prices and service for all our catering, retailing and small business customers in the UK."

Shares in Booker, up almost 29% in 2013, were down 2.84% at 126.6p at 12:07 BST.

Shore Capital analyst Darren Shirley said Booker's update indicated the company's core business was "a little behind expectations". The result "implies the need for a little pick up in trading momentum through the year to meet forecasts", Shirley said.

However, he added: "That said, we continue to believe that Booker has a lot 'in the tank' with which to avoid disappointment."

Shore Capital has a 'sell' recommendation on Booker's shares. Shirley said: "To justify Booker’s valuations, we believe structural upgrades are required. As such, with no evidence of upgrades from today’s update, and Q1 trading below expectations, we reiterate our 'sell' recommendation."

Show the press release

Booker Group plc ('Booker Group')

Annual General Meeting and Quarter One Interim Management Statement

For the 12 weeks to 21 June 2013

Booker Group, the UK's leading food wholesaler, is holding its Annual General Meeting at 11am today.  At the meeting, Chief Executive Charles Wilson will read out the following Interim Management Statement:

"Overall it has been a good quarter.  Total sales, including Makro, were up 13.6%.  Booker's non tobacco like-for-likes were +3.1% despite last year having a Diamond Jubilee and better Easter weather.  Makro's non tobacco like-for-likes are performing in line with our expectations at -3.6%.  Tobacco sales, as expected, have been depressed by the growth of illicit tobacco.  Makro has a small tobacco business and the tobacco sales decline has been compounded by the impact of the display ban.  After a good start, we anticipate that Booker Group is on course to meet expectations for the year ending 28 March 2014."

 



Total

%

Tobacco

%

Non Tobacco

%

Booker Group

Total (inc Makro)¹

13.6

1.4

20.9

Booker

Like-for-like

1.0

(2.5)

3.1

Makro

Like-for-like²

(6.0)

(20.8)

(3.6)

 

 

Charles Wilson, Chief Executive, said:


"Booker Group continues to make good progress with sales up 13.6% in quarter one, including Makro.  Our plans for bringing Booker and Makro together are on track.  Booker and Makro are continuing to improve choice, prices and service for all our catering, retailing and small business customers in the UK."

 

Notes: 

1.  Makro was consolidated from 19 April 2013

2.  Makro's like-for-like sales percentage decrease reflects its sales from 19 April 2013 to 21 June 2013 compared to the equivalent period in the prior year

3.  Sales are stated net of value added tax.


Original source: Booker