Reynolds’ turnover hit by ‘Pretxit’ but profits are up

Fresh and chilled produce wholesaler Reynolds’ decision to pull out of its distribution contract with Pret a Manger has hit its turnover by more than 10%, according to figures released this week.

The Waltham Cross, Herts-based wholesaler’s sales for the year ended December 31 2016 were £190.5m, down 10.7% on the year before. Reynolds said that the drop in turnover included £39.8m worth of business lost from the Pret contract.

Reynolds stopped delivering directly to the nationwide sanwich, sushi and coffee chain in January 2016 to concentrate on ‘the distribution of Reynolds wholesale products’.Sales of its own products had ‘increased significantly’ the company said, and this had offset the effects of ‘Pretxit’.

Pre-tax profits for 2016 rose to £507,000 – compared to a loss of £1.7m in 2015; EBITDA was £4.5m.

The Pret agreement had run since 1995 and was one of the longest-lasting partnerships in the industry. However, Reynolds continues to supply Pret with salads, fruit and veg via an agreement with Bidvest Logistics.

 

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