Bestway Wholesale sees sales and profits decline in 2024/5

Bestway Wholesale saw sales decline from £1.63 billion to £1.56 billion in the year ended 30 June 2025.

Gross profit was down from £119 million to £102.2 million, while operating profit dropped from £51.5 million to £48.9 million.

Nevertheless, in its annual report, the company said that its results represent “a strong performance in the current demanding and competitive market conditions”.

It added: “The reduction in headline sales is primarily driven by double-digit decline for tobacco lines. However, the impact on company profits is limited, as tobacco is a relatively low-margin product category.

“Non-tobacco sales performance has shown single-digit growth during the year driven by inflation and small gain in market share in key categories.”

As regards the profit numbers, Bestway said: “The fall reflects the underlying competitiveness of the market where all the players are sacrificing margin to retain the market share. The directors are confident that the company is following the right pricing policy to remain attractive in the market.”

Operating costs for the year rose from £76.8 million to £85.3 million. “Inflationary pressures from circa 10% increase in national minimum wage and new national insurance contribution changes have played a key role in changing the operating cost structure, which have been partly offset by headcount, operating and logistical efficiencies,” said the company.

“Energy and fuel costs, while still proportionately high, have been broadly stable year on year due to the continuing benefit of long-term service contracts and efficiency improvements.

“We continue to drive efficiency while offering our customers value and service.”

In its future outlook, the statement said: “The directors look forward to the future with confidence. The outlook for fiscal year 2026 is another strong year, with profitability remaining broadly in line with the previous year.”