Palmer & Harvey sales up with Costcutter deal

Date : 10 September 2015

Major UK delivered wholesaler, Palmer & Harvey, and the biggest specialist distributor to the country's convenience market, has announced sales of £4,466m for the year to April 2015, up 6%.  These results are the first reported since the initiation of the eight year supply deal with symbol group Costcutter, which began in mid 2014, and which was expected to bring a boost of some £300m to Palmer & Harvey in the period.

Profit up 11%

Gross profit for the year rose to £215m, up from £194m.  This represents an improvement in profitability, with margin increasing by 0.2 percentage points to 4.8%.

Expanding company owned store estate

Though still a small part of the business, since 2012 Palmer & Harvey has also been developing a directly owned and operated chain of convenience stores under the Central fascia.  This is being expanded through select, targeted acquisition, and has now grown to 39 stores located across southern England.

Chris Etherington, chairman and chief executive of Palmer & Harvey commented:

"This has been a year of transformation for P&H.  Our partnership with Costcutter is delivering buying benefits to our customers and is operating well with an expanded number of stores.  Our small drop expertise positions us well for the current changes in the grocery market which is seeing rapid expansion in convenience format stores."

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