UK food-wholesaler Booker Group has today announced its Q1 trading update.
Chief executive Charles Wilson has stated that after a solid quarter, group sales rose by 10.0%, including those of Londis and Budgens. Cash-and-carry business Makro also had a good quarter, in the areas of cash profit and customer satisfaction.
Deflation in food prices and weak consumer demand impacted sales of non-tobacco items, which were reduced by 0.7% on a like-for-like basis. Tobacco sales were down by 7.7%, like for like, attributed to the adverse effect of the ban on small stores displaying tobacco products.
Booker also repeated that it is seeking shareholder approval for a capital return to shareholders, at a cost of around £57 million, or 3.20 pence per ordinary share.
Chief executive Wilson said, “Booker Group continues to make good progress. Our plans to focus, drive and broaden Booker Group are on track.
“Budgens and Londis joined the Group last September and are making a solid contribution.
“We continue to enhance choice, price and service for our retail, catering and small-business customers and look forward to growing with them in the year ahead.”
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Aoife Lawless. To subscribe to ESM: The European Supermarket Magazine, click here.
