Bestway Wholesale reports sales and profits decline

Despite an increase in group pre-tax profit of 6% to £413.3 million on turnover ahead by 9% to £3.28 billion, the wholesale business of Bestway Group sustained a fall in both profit and sales in the year to June 2016.

Pre-tax profit slid from £44.6 million to £19.7 million on turnover down from £2.27 billion to £2.17 billion. The directors describe the decreases as being “in line with the performance of the broader wholesale sector”. They attribute the downturn to “a conscious decision to invest in margin to support the independent retail sector against the increased competition from the multiples.

“There has also been investment in foodservice and symbol club, which should translate into a more positive trading performance going forward.

“The variance in profitability is also explained by a lower gain on revaluation of properties of £3 million in 2016 compared to £18.8 million in 2015.”

The directors also refer to the wholesale sector in general being affected by food price deflation, intense competition and changing consumer habits.

Despite the challenges, Bestway has maintained its focus on symbol & club, in which Best-one and Xtra Local membership continues to grow, and on foodservice and digital. Catering sales rose by 5%, with 25 major suppliers now enjoying growth of more than 20% with the C&C/wholesaler.

There are over 28,500 registered users online, with weekly sales averaging £4.7 million. The mobile app accounts for nearly 15% of all online transactions.

Turnover of the Well pharmacy business was £802.7 million, with pre-tax profit on £27.5 million.

Tel: Bestway Group 020-8524 1234

Published Date: February 6, 2017
Category: Wholesale Industry News