Spar owner reports ‘positive trading’ as sales rise by 9%

FinanceNews

A.F Blakemore, the parent company of symbol group retailer Spar, has reported a 9% increase in sales, claiming a “positive trading period”.

In the 24 weeks ended 1 May 2022, the company announced underlying EBITDA of £20 million, despite “unprecedented market wide supply chain upheaval”.

This follows on from a 19% rise in sales last year.


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The group also reported a pre-tax loss of £3.3 million, down from a pre-tax profit of £6 million in the previous year, with underlying pre-tax profit sitting at £2 million after exceptional costs.

The loss comes as as the company claimed that maintaining a “high-level of supply chain performance” required it to make a significant investment during this period.

As a result, it opened up a new Bedford depot, providing future supply chain security to its trade partners and has at once enabled greater stock holding at a time where many manufacturers were struggling with inbound availability,

“The results for the year to May 2022 reflect a challenging time, however we believe that there is continued growth opportunity for a values-based business that invests for the long-term, within our industry,” Blakemore said.

CEO Jerry Marwood added: “We have continued to perform well into this current year and after 24 weeks our sales for 2022/23 show a further growth of 9%, when considering last year’s growth, this is a fantastic performance. Being an independent business means we can continue to invest even through the most challenging times.

“The decisions we made in 2021/22 have resulted in stable outbound supply, growth in new format propositions and the successful trial and roll out of our new commercial system.”

He concluded: “Process improvement and investment in technology has also delivered greater efficiency and a corresponding improvement in our base margin, however, given the macro-economic turmoil predicted in the next 18 months, we must continue to be vigilant and work hard to protect our customers interests.”

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