Palmer & Harvey's sales increased 5% to £4.23bn in the year to April, with tobacco sales up 5.7% to £3.2bn.
However the wholesaler said it made just £500,000 pre-tax profits in the same period, leaving it with a margin of 0.01%.
Having relaunched its Mace fascia and Sweetdirect confectionery business, the business was investing for the future, said CEO Chris Etherington.
It had paid exceptional charges of £4.5m largely as a result of consolidating its supply chain, he pointed out, adding that P&H had also reduced its bank debt by £68m to £201m.
"P&H is in a very comfortable position because it is owned by management," he said. "We are growing it for the medium to long term. Everything we do is about sustainability and not short-term growth. We are trying to get in great shape to meet the future demands of the market. We achieved exactly what we wanted and more last year, despite a volatile market."
He claimed that the company's earnings before interest, taxes, depreciation, amortization and exceptional items (EBITDAE) of £42.4m gave a better indicator of P&H's health than pre-tax profits alone.
P&H had built a national infrastructure to service increased demand for chilled and fresh produce, including multi-temperature vehicles that could deliver six days a week, he said.
Tobacco accounted for more than three quarters of turnover, but Etherington said he was not concerned by gloomy predictions about tobacco sales.
"We are selling more tobacco as people travel abroad less and we don't agree that sales will decrease," he said. "Tobacco has good volumes and we are happy with it."
He admitted P&H could lose a £250m Somerfield tobacco contract next year, as a result of the retailer's takeover by The Co-operative Group. However, he expected ongoing increases in volume to outweigh the loss, he said.
The Mace fascia, which was revamped earlier this year, had already recruited 30 new stores to its estate, he added.
However the wholesaler said it made just £500,000 pre-tax profits in the same period, leaving it with a margin of 0.01%.
Having relaunched its Mace fascia and Sweetdirect confectionery business, the business was investing for the future, said CEO Chris Etherington.
It had paid exceptional charges of £4.5m largely as a result of consolidating its supply chain, he pointed out, adding that P&H had also reduced its bank debt by £68m to £201m.
"P&H is in a very comfortable position because it is owned by management," he said. "We are growing it for the medium to long term. Everything we do is about sustainability and not short-term growth. We are trying to get in great shape to meet the future demands of the market. We achieved exactly what we wanted and more last year, despite a volatile market."
He claimed that the company's earnings before interest, taxes, depreciation, amortization and exceptional items (EBITDAE) of £42.4m gave a better indicator of P&H's health than pre-tax profits alone.
P&H had built a national infrastructure to service increased demand for chilled and fresh produce, including multi-temperature vehicles that could deliver six days a week, he said.
Tobacco accounted for more than three quarters of turnover, but Etherington said he was not concerned by gloomy predictions about tobacco sales.
"We are selling more tobacco as people travel abroad less and we don't agree that sales will decrease," he said. "Tobacco has good volumes and we are happy with it."
He admitted P&H could lose a £250m Somerfield tobacco contract next year, as a result of the retailer's takeover by The Co-operative Group. However, he expected ongoing increases in volume to outweigh the loss, he said.
The Mace fascia, which was revamped earlier this year, had already recruited 30 new stores to its estate, he added.
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