Booker LFL sales lifted by summer weather

Booker LFL sales lifted by summer weather

UK wholesaler Booker Group has reported a jump in first-half sales, which were boosted by the contribution from Makro and like-for-like growth.

The company said total sales in the half to 13 September rose by 16.5% year-on-year.

Gains were driven by the inclusion of sales generated at Makro, which was formally purchased from German retail giant Metro Group in a deal worth GBP139.7m (US$224.5m) earlier this year. 

Booker said it is making progress turning around the struggling Makro chain, with the fall in non-tobacco sales decelerating as the year progressed. Sales dropped 1.9% in the half, but sales were down just 0.6% in the second quarter. Integration is "on track", Booker said.

Like-for-like sales, excluding Makro revenues, increased by 2.3%. Booker said both its Booker Wholesale arm and its Booker Direct delivery business had "good" halves, with warm summer weather proving a boon for Booker's retail customers.

Booker added it pushed ahead with its plans to expand in India. It opened two new outlets in the period, bringing the number of wholesale branches to six.

Booker will deliver its interim results on 17 October. 

Show the press release

Booker Group plc ('Booker')

Quarter Two Trading Update and

Notification of Interim Results Announcement

 

 

Booker Group is the UK's leading food wholesaler.  Total sales in the 12 weeks to 13 September 2013, including Makro, rose by 19.3% on the same period last year.  Booker like-for-likes (excluding Makro) were 3.5% higher with non tobacco like-for-likes up 6.9%. 

 

Total sales in the 24 weeks to 13 September 2013, including Makro, rose by 16.5% on the same period last year.  Booker like-for-likes (excluding Makro) were 2.3% higher with non tobacco like-for-likes up 5.0%.

 

 

 

12 weeks to

13 September 2013

24 weeks to

13 September 2013

 

 

Total

 

%

Tobacco


%

Non Tobacco

%

Total

 

%

Tobacco

 
%

Non Tobacco

%

Booker Group

Total (inc Makro)¹

19.3

1.8

30.0

16.5

1.6

25.5

Booker

Like-for-like

3.5

(2.0)

6.9

2.3

(2.2)

5.0

 

 

Booker Wholesale, our cash and carry division, had a good half.  Customer numbers were up generating strong sales.  The warm Summer weather helped our customers.

 

Booker Direct, our delivered wholesale division, also had a good half.  Chef Direct, our foodservice business is making good progress.

 

The Makro turnaround is progressing well with non tobacco sales down 0.6% in the 12 weeks and down 1.9% in the half.  Our plans for bringing Booker and Makro together are on track. We have made major strides on cash management.  We have started to improve choice, prices and service for our catering, retail and small business customers. 

 

In India we opened a further two branches in the first half, one in Mumbai and one in Surat, taking our total to six branches.

 

As at 13 September 2013 net cash was £123m versus net cash of £70m a year ago.  The cash includes £12m from the sale and leaseback of two cash and carries.  Following a good first half the outlook for the year as a whole remains unchanged.

 

Charles Wilson, Booker Chief Executive, said:

 

"Booker Group has had a good start to the year as we continue to focus, drive and broaden our enlarged business.  Our plans for bringing Booker and Makro together are on track.  We are continuing to improve the choice, prices and service to catering, retailing and small business customers in the UK."

 

 

Booker Group plc will announce its interim results for the 24 weeks to 13 September 2013 on Thursday 17 October 2013. 

Original source: Booker Group