Financial results to end June 2019, was a year of growth in revenues for Bestway Wholesale alongside investment for the future as it integrated Bestway Retail (further to the acquisition of Conviviality’s Retail Brands in April 2018) within the retail estate…
Figures published today (24th March 2020) for the Bestway Group, show that revenues within the Bestway Wholesale business (a subsidiary of Bestway Group) grew 13% to £2.3 billion in 2019 from £2.1 billion in 2018 as the company invested in technology and supply chain to drive value into the future of its business.
Volumes were positively influenced by the continued focus on customer channels to deliver value-add including investment into best-one symbol group, the Multiple Accounts division and Xtra Local Retail Club. Sales to symbol grew 3.3%, as investment into the ‘My Rewards’ rebate scheme continued, to help Symbol customers increase margins and profitability whilst driving loyalty back into the business.
Revenue also improved by the inclusion of the full year impact of Bestway Retail and its’ 629 Franchise and Corporate stores in 2019 compared to 3 months in 2018.
In a year where the management team focused on incorporating the Bestway Retail brands (Bargain Booze, Select Convenience, Central Convenience Stores and Wine Rack), Managing Director of Bestway Wholesale, Dawood Pervez commended his team for their commitment in successfully imbedding over 600 new stores into the business in a rapid space of time, and highlighted that the results were exceptional against a backdrop of tough trading conditions, economic turbulence, wage inflation, and a number of one-off exceptional costs that were absorbed resulting from the Bestway Retail acquisition. He said:
“It is well documented that Bestway Retail required stabilising and re-energising during a year of economic turbulence (Brexit), and legislative change across the National Living Wage. Market conditions for the wholesale sector also intensified during this period with Tesco, Morrisons and Asda entering the wholesale market place.
“However, the year was also one where we invested heavily into the future of the Wholesale business to ensure we remain at the forefront of the industry. Our commitment to continuous customer service improvement led to a growing emphasis on designated delivery hubs to offer better and quicker service, underpinned by an ongoing programme of investment into technology and data driven solutions.
“This investment led to a growing online and digital business, as we look to strategically become a progressive, technology-led company that helps its customers and supply partners to optimise opportunity in the years’ ahead”.
Commenting on the catering results, Pervez highlights that Catering sales grew 2.5% during the year to £162 million:
“Growth in Catering markets was supported not only by our supply chain investments including the hub project but also by our new BB Foodservice website and app, which were launched at the end of 2018. The app accounted for 3% of total online transactions. We remain committed to the market with diverse customers from fast food to hotels and restaurants and our contracts with Prisons and Schools and building on the strong foundations already laid across the catering industry.”
Bestway Vans Direct, which was also acquired midway through the prior financial year, saw a 362% increase in sales to £43.6m, largely through investment in talent and the company’s own tablet-based app software which enables Vans to offer an unrivalled service for suppliers including NPD drives, surveying and POS placement, whilst delivering to 20,000 retailers every two weeks.
Bestway Wholesale has over 60 depots and serves thousands of catering outlets, pet specialist businesses and over 40,000 independent retailers every week. The Wholesaler also has over 2,000 members of its symbol group and over 600 corporate and franchise retail stores under Bestway Retail.
Bestway Wholesale is a subsidiary of the Bestway Group. Bestway Group is the UK’s 13th largest privately owned business and consists of i) Bestway Wholesale, the UK’s largest independent wholesaler; ii) Well Pharmacy, the UK’s largest independent retail pharmacy; iii) Bestway Cement, Pakistan’s largest cement manufacturer; and iv) United Bank Limited, Pakistan’s 2nd largest private bank. Bestway Group saw annual turnover increase 6.3% during the period to £3.4 billion.