Booker suffers first quarter sales slowdown
First quarter sales at grocery wholesaler Booker have to 0.2%, compared to 1% in the preceding quarter and 1.5% for the last financial year.
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But chief executive Charles Wilson maintained it was a "solid" performance for the first 12 weeks of the financial year and assured that the group remained on course to meet expectations for the year ending 25 March 2016.
"Booker Group continues to make good progress," he said in an announcement released on the day of the company's annual shareholder meeting, adding that the cash-and-carry division had "a good quarter" and that the 11 combined Booker/Makro sites were "working well".
Like-for-like sales, including Makro, were up 0.4%, comparing unfavourably with the 1.7% LFL growth in the fourth quarter of last year.
A major disruption during the quarter ended 19 June was a 0.9% decline in total and like-for-like (LFL) tobacco sales.
Wilson added that sales in India were continuing to make progress, that customer satisfaction improved and performance was overall in line with expectations.
The balance sheet remained strong with a net cash position, with shareholders later in the day voting on a proposed £62m capital return.
"Our delivered wholesale businesses Booker Direct, Chef Direct, Classic and Ritter had a good quarter," Wilson said.
He added that Booker's acquisition of Londis and Budgens continued to be examined by the Competition and Markets Authority (CMA) and the company will update shareholders when the CMA stage 1 review is complete.