Sales up but profits down at JJ Food Service

JJ Food Service has topped turnover of £200 million for the first time, although profits have been hit.

The sales figure of £201 million for the year ended March 2018 compares with £194 million for the previous year. Pre-tax profit, however, dropped from £6.1 million to £3.7 million.

The sales rise largely reflected the fact that the company was trading from three extra branches – Dagenham (Essex), Leicester and Newcastle – all of which opened towards the end of 2016. There are now 11 sites.

Group general manager Terry Larkin said: “Moving to the hearts of these cities has brought our business closer to customers, helping them to make great savings when they click and collect.”

He attributed the profits fall to food price rises, staff costs and general consolidation in the market, adding that there was a 20% rise in the number of UK restaurants closing.

Larkin said that the company has dealt with these challenges by absorbing food price increases, helping customers to remain competitive.

“We also offer advice on how to increase margins on menus. It’s more important than ever that caterers innovate and engage with their customers. No one can rest on their laurels in such a competitive environment.

“With so many wholesalers to choose from, it is service that will really differentiate them in the year ahead.”

JJ Food Service (01992) 701701

Published Date: December 20, 2018
Category: Wholesale Industry News