UK: Profits Up At Booker; Outlines Makro Plans

Source from:  Kamcity.com 10/19/2012

Booker today reported a 13.3% rise in its first half profit as demand from caterers and small retailers held up despite the unusually wet weather and weak consumer spending. The cash & carry group said pre-tax profits rose to £51m in the 24 weeks to 14 September, with revenue increasing 3.3% to £1.90bn. Total like-for-like sales rose 3.1%, with LFL non-tobacco sales up 3.8% during the period while the equivalent tobacco sales increased 1.8%. The company's results exclude the operations of Makro, the loss-making business which Booker acquired from Metro earlier this year. "As we are uncertain as to the precise date of consolidation, we expect Makro to have an adverse impact on the group's operating profit to March 2013 of the order of nil to £10m," the company said in a statement. Makro is being treated as a separate investment until the OFT give the go-ahead to the deal. If it gets clearance, Booker said it planned to open trade-only Booker concessions in around half of Makro's 30 depots. It would also fit larger delivery centres into all the depots. "This should give the Booker Group capacity to grow to being a £6bn turnover business," chief Executive Charles Wilson said. Booker's annual turnover is currently £3.9bn. Wilson also said he anticipated £26m of synergies could be secured by 2013/14. "This should help restore Makro to profitability and will help improve choice price and service for our customers," he added. Booker will help Makro improve its meat, soft drinks and premium catering ranges, while Makro will help Booker improve its fish, frozen and non-food. "Makro has some great people, customers, products and locations," Wilson added. "Our intention is that Booker will stay a trade only business and Makro will continue to serve the trade and small companies." Commenting on group results, Wilson said: "Our plan to Focus, Drive and Broaden Booker Group is on track. Booker Direct, Ritter Courivaud and Classic are performing well and Chef Direct has got off to a great start. " Enditem