United Wholesale Grocers has attributed the ongoing impact of product inflation to a decline in annual like-for-like sales, after the decline was revealed in the cash and carry company’s annual results for the year ending 31 December, 2022.
Although the results did not reveal exact figures for the sales decline, it did outline a decline in turnover from £221.32m to £218.05m during the period. Operating profit fell by 33% from £7.2m to £4.8m, while gross profit rose to £16.95m from £16.15m in the year.
Despite the declines, the company’s managing director, Amaan Ramzan, said the company had positive stock levels for retailers. He added: “Like-for-like sales by volume showed higher percentage decrease because of product inflation.
“United Wholesale Grocers has continued to improve and manage the availability of products during this period. Where shortage was expected, we carried higher levels of stock, which had a favourable impact on sales. The increase in gross profit has arisen from favourable discounts on purchases and due to continuous review of pricing and promotional strategy. The industry is extremely competitive, with the market being served by numerous competitors. We have appropriate competitive price, value and promotions that drives our business and provides quality customer service.”