Bestway Wholesale announces 2016 pre-tax profit slump

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Bestway Wholesale has announced a drop in pre-tax profits of more than 50% amid “difficult business conditions”.

Pre-tax profits fell from £44.6m to £19.7m in the year ending 30 June 2016, while turnover dipped 1.1% to £2.17bn.

The wholesaler said the profit decline was driven by a “conscious decision” to invest in margin to support independent retailers, and by investment in Foodservice and its Symbol Club.

It also blamed declining profit and turnover on food price deflation, intense competition and changing consumer habits which had adversely impacted the wholesale sector.

Zameer Choudrey, Bestway Group chief executive, said: “2016 has been a year of consolidation for the Group. Despite difficult business conditions in the UK, we have maintained our market share across the Wholesale and Pharmacy businesses.

“During the year, Well Pharmacy was fully separated from The Co-operative Group and it is now a standalone business, thus eliminating a key business risk.”

Readers' comments (3)

  • Interesting times... Booker is doing so well and Bestway is down the pan. Nothing seems to be working for them.. their branch availability is awful, delivery's never turn up in time, their website used to be very good is now just full of adverts. i've moved my business slowly over my local booker.

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  • They need to blame only themselves and empty shelves at the depot

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  • It’s pretty obvious that we are in challenging times and the “Best Way” profit has plummeted even allowing for exceptional write downs. It also underscores the fact that in the long run the independent sector needs mergers like TESCO / Booker more than ever. The word “independent” is often mistaken for nostalgia and not realism that we all need to accept. The market has changed, the supply chain lines are being blurred more and more and so the question is – does it matter really who supplies you as long your customers are happy with the product quality value and availability and you are making a profit. Your customers are not interested in the supply chain, only their wallets. Everything else is irrelevant. I fully welcome the merger (Tesco/Booker) for not just us members but also for the greater good of the convenience sector. This is the only way we can take ourselves to the next level as Charles Wilson (Booker CEO) recently remarked.

    Arjan Mehr Londis Bracknell

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