Sales up at Booker

Food and drink wholesaler Booker has reported a 5.1% increase in like-for-like sales for the 52 weeks to 25 March.

The group said total sales were up 6.2% to £3.6bn with operating profit up 15% to £76.5m and profit before tax up 25% to £71.4m. Profit after tax was up 24% at £59.1m. Its final dividend is up 36% at 1.4p per share.

Customer numbers have increased by 28,000 to 459,000 with internet sales up 29% to £526m with the number of online customer numbers doubling on last year.

Price remains key to Booker and it continues to survey competitors prices every week. Its Euro Shopper value branded items have seen sales increase to £56m — up from £44m last year. "During the year our price index remained competitive and this has been noticed by customers," said chief executive Charles Wilson.

"We expect pricing to become even more important as the economy remains challenging and commodity prices become more volatile. During the year we 'rolled back' prices on 850 lines and expanded Euro Shopper and Booker Basics, our value brands. We expect to build on these actions in the year ahead."

Classic​

Booker said drinks wholesaler Classic, which it acquired from Halewood for £3.7m in October 2010 had already started to make a contribution to revenue.

Classic supplies wine, beer, spirits and non-alcoholic drinks to pubs, clubs and licensed premises and had around 2,000 pub accounts when it was bought by Booker.

Classic operates from eight depots in the Midlands and the North of England and has current annual sales of approximately £30m. Booker hopes it will prvoide a platform to increase its delivered sales to pubs and take on major rivals such as Matthew Clark and Waverley TBS.

Booker is to save on rental costs by moving some Classic warehouses into a neighbouring Booker business centre.

"We believe that in the next three years Classic/Booker can become a new force in the UK on-trade sector, offering a low risk, low cost, high service, local solution," said Wilson.

Challenging​

It has converted 115 of its 172 business centres to the 'Extra' format, which feature a lighter, brighter business centre environment and an improved choice, price and service. "The conversion pays back in around a year and we plan to convert a further 20 business centres to 'Extra' in the year ahead," said Wilson.

He added: "The UK economy looks challenging, but we are committed to helping our 459,000 customers prosper in the year ahead."