UK: Booker Sales Growth Slows on Tobacco Hit

Source from:  Reuters  07/19/2012

Britain's biggest cash and carry wholesaler Booker (BOK.L) said it was on course to make profit expectations for the 2012-13 year even though sales growth slowed in its first quarter, dragged back by falling tobacco sales. The firm, which runs over 170 branches supplying convenience stores, restaurants, pubs, schools and prisons, said on Wednesday its total sales rose 1.7 percent in the 12 weeks to June 22. While non tobacco sales increased 3.9 percent, tobacco sales fell 1.7 percent, with demand adversely impacted by a rise in duty. Group like-for-like sales also increased by 1.7 percent, down from a rise of 4.8 percent in the fourth quarter of the previous year. Although inflation is easing British consumers are still being squeezed by meagre wages growth and government austerity measures designed to cut record debt. Shares in Booker, which have increased by 20 percent over the last six months, closed Tuesday at 87.5 pence, valuing the business at 1.51 billion pounds. In May Booker purchased the loss-making UK cash & carry operations of German retailer Metro (MEOG.DE) in a 140 million pounds cash and shares deal. Enditem