Spar wholesaler CJ Lang & Son’s turnover plummeted by 4.8% this year due to an industry-wide decline in cigarette sales.
Turnover fell from £194.6m to £185.4m, while operating profit fell by 2.9% from £1.35m to £1.31m for the financial year ending 30 April 2017.
CJ Lang & Son attributed the year-on-year reduction in turnover to increased competition and a decline in cigarette volumes.
Cost increases triggered by the introduction of the national living wage also forced the Spar wholesaler to make cost reductions throughout the business. These measures pushed up its pre-tax profits from £914,000 to £925,000.
“The group continues to operate in a highly competitive trading environment which, coupled with further enforced cost increases, indicate that the year ahead will be extremely challenging,” the directors said.
“Our strategy continues to be focused on developing the Spar business in Scotland through growing store numbers and investing in new initiatives to increase footfall and revenues, while also pursuing procurement improvements in collaboration with our Spar partners.”