UK food and drug wholesaler Booker Group plc (LSE: BOK) reported results for the 24 weeks ended 11 September 2009, showing a 7.7% increase in like-for-like sales with an increase in profits after tax of over 12% to £24.7m. Overall the figures fell in-line with earlier guidance and some investors appear to have taken profits following the recent strength of the share price. Booker’s shares slipped 2p to trade at 43.5p per share on Tuesday.
The group’s strong sales growth was fuelled by sales to caterers with like-for-like growth of 12.6% during the period, non-tobacco sales rose 9.4% while tobacco sales increased by more than 5%.
Subsequently Booker recorded a 12.3% increase in profit after tax and achieved earnings per share of 1.66p, which represents a 12.2% increase on H1 last year. Booker announced that they will increase the interim dividend by 20% to 0.24p per share.
Operationally the Booker Group has expanded considerably in a several areas, perhaps the most notable is the substantial increase in the group’s e-commerce activity which recorded a 88% increase in on-line sales.
Booker has developed its UK operation with the conversion of another 10 branches into the 'Extra' format, taking the total number of 'Extra' branches to 81. An additional 14 are planned for the second half. Internationally Booker is expanding also, during the period the group opened a branch in Mumbai, India.
Booker Group’s securities completed the move from London’s junior market, AIM to the Official List of the London Stock Exchange on 1 July 2009.
Booker chief executive, Charles Wilson commented: "Booker is helping more independent caterers and retailers compete in a difficult economic environment ... we have grown sales by GBP115.7m in the first half. Plans to broaden the business are progressing well. Our internet sales increased to GBP180.8m (GBP96.4m last year), we have become a major force in the delivered wholesale market and our branch in India is now open."