Booker delivered a modest uptick in sales and profits last year, but expectations remain positive, with the wholesaler “adapting very quickly” to sector challenges, according to Tesco CEO Ken Murphy.
In the 52 weeks to 22 February 2025, like-for-like sales rose by just 0.2% at the Tesco-owned wholesaler, while adjusted operating profit increased 0.7% to £292m.
Murphy said that Booker’s core catering and retail businesses had been “the real drivers of growth”, alongside “particularly strong growth last summer” following the warmer weather.
Profits were also boosted by a “record save to invest contribution more than offsetting operating cost inflation”.
In terms of its symbol group estate, Murphy said Booker had done a “phenomenal job with its Premier banner, and also with Londis and Budgens to outgrow the rest of the market”. “It’s been a real success story in retail,” he added.
Over the period, Booker added 369 net new retail partners, with over 300 retailers now using the wholesaler’s rapid delivery service, Scoot.
In catering, Murphy said Booker had performed well as a result of innovation in own-brand and food development. He added that as the business has “progressively moved more and more into fresh food”, he believes this will be “a source of growth” for Booker this year.
However, he admitted that the environment “definitely got more challenging for independent retail and catering” in the second half of the year.
At that time, data found that 96% of small shop owners said they were finding it harder to keep their businesses afloat due to increasing retail crime levels, steep energy costs and government tax hikes. Meanwhile, more than two-thirds of hospitality businesses were operating at or below 85% of required capacity and 79% said they had increased prices.
Murphy said that Booker “recognises the challenges but is adapting very quickly”, with its customers “outperforming the market as a consequence”.
Looking ahead, Murphy said he was “excited” for Booker’s prospects, as he expected the business would “continue to innovate, and continue to provide great products at great value for the catering and retail base of customers it has”.
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