As Booker awaited final approval of its takeover of Makro it continued to perform resiliently well for the 24 weeks ended 14th September, with total sales of £1.9bn, up 3.3%. Like for like sales were up 3.1%, with non-tobacco up 3.8%, and tobacco up 1.8%. This comes in the wake of the so called ‘dark market’ in England and Wales, which was expected to push sales from the multiple channel, into convenience.
Operating profit at the wholesales was up 12.4% to £51.6m (pre £3m exceptional charge related to Makro acquisition costs), while profit after tax stood up 13% at £40.8m.
Subject to obtaining competition clearance, Booked expects Makro to reduce Group operating profit in 2012/13 by £nil to £10m, and increase operating profit in 2013/14 by circa £10m.
Commenting on the results, Charles Wilson, Chief Executive of Booker, said: “Our plan to Focus, Drive and Broaden Booker Group is on track. We improved choice, price and service for our customers, which increased sales by 3.3%. Booker Direct, Ritter Courivaud and Classic are performing well and Chef Direct has got off to a great start and the increase in the interim dividend is evidence of the Board’s confidence in the outlook for Booker. Subject to competition clearance Booker and Makro will be able to improve choice, prices and service for caterers, retailers and small businesses in the UK. Once integrated, Makro will prove a good addition to the Booker Group.”
Among the operating highlights the company sais customer satisfaction has improved, which has led to a drive in like-for-like sales, while internet sales had grown 10.7% to £332m.
Steve Fox, Sales Director – Retail added: “We have continued our focus on delivering value for independent retailers in the first half of the year. We have concentrated on increasing choice, lowering prices and improving our service so more customers are choosing Booker. Premier is doing a good job for our retail customers with sales +9%. This is market leading growth and is part of our aim to build a £1bn Premier business. We now have 2735 stores and have continued to focus on improving store standards and increasing compliance across the estate. Our Mega Deal promotion continues to drive extra sales and footfall into stores, with sales reaching £1 million each promotion. Euro Shopper continues to go from strength to strength, with sales growing at 17%. The market will remain challenging as shoppers continue to watch their spend, which is why we will be focussed on driving our value offer. I am grateful that our customers are rewarding us with a greater share of their spend and look forward to continuing to serve them.”
