United Wholesale Grocers’ pre-tax profits fell by 28% to £7.3m in the year ended 31 December 2021, according to newly released Companies House results.
The fall came despite a 2.5% increase in sales to £221.3m over the same period.
UWG said the decreased profits could be attributed to lower margin rates, due to a continuous review of its pricing and promotional strategies.
The business also said increased operating costs and a higher level of promotional discounts had played a part in the lower profits.
However, despite the slump, the level of cash in the bank increased by about £1m from £16.9m in 2020 to 17.9m in 2021.
The company said this provided it with a strong financial headroom in a challenging trading environment.
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