Diana Hunter, Chief Executive Officer of Conviviality, said: “I am pleased that the Group has delivered this strong performance across all divisions during such a transformational period. This further demonstrates the teamwork and dedication of all of our people in maintaining excellent levels of service to their customers. The organic growth in each business unit demonstrates that existing and new customers are increasingly recognising Conviviality as the leading solution provider and distributor to the UK drinks market.”
Conviviality Plc (AIM: CVR), the UK’s leading independent wholesaler and distributor of alcohol and impulse, serving customers through its Franchised retail outlets and through hospitality and food service, has given DirectorsTalk an update on trading for the 26 weeks to 30 October 2016.
Group unaudited revenues for the period were 211% ahead of last year at GBP783m (H1 2016 (27 weeks): GBP252m) and includes revenues from the acquisitions of Matthew Clark on 7 October 2015, Peppermint on 31 December 2015 and Bibendum PLB Group on 20 May 2016.
Following these acquisitions Conviviality has been organised into three business units:
Conviviality Direct: The UK’s largest independent wholesaler to the on-trade serving 23,000 outlets from national prestige hotel chains to independent food-led pubs and restaurants.
Conviviality Retail: The UK’s largest franchised off licence and convenience chain with 358 Franchisees and more than 700 retail stores trading primarily under the Bargain Booze, Bargain Booze Select Convenience and Wine Rack fascia.
Conviviality Trading: A full service brand and wine agency with activation capability including festivals and events. New products can be developed through the whole lifecycle and through to the on-trade and off-trade.
Conviviality is pleased to report that sales in each business unit for the 26 weeks ending 30 October 2016 are above the corresponding prior period:
-- Conviviality Direct sales are up 5.2% -- Conviviality Retail sales are up 2.5% -- Conviviality Trading sales are up 5.1%
Conviviality Direct generated sales of GBP515m in the 26 weeks to 30 October compared to sales in the 3 weeks from 7 October 2015 to 31 October 2015 of GBP60m.
Conviviality Retail generated sales of GBP189m in the 26 weeks to 30 October 2016 (H1 2016 (27 weeks): GBP191m compared to GBP184m in the 26 weeks to 31 October 2015. Like for Like sales are (1.7)% reflecting comparisons against the prior year Summer marketing campaign. Stores opened since 2012 continue to tradestrongly with like for like store revenue up 1.1%.
On 28 October 2016 Conviviality Retail announced a two year supply agreement with Palmer & Harvey to provide lower volume beers wines and spirits. This agreement further demonstrates the strength of the Conviviality proposition as the UK’s leading independent distributor in the drinks market.
Conviviality Trading generated sales of GBP79m in the 26 weeks to 30 October 2016 compared to sales in the 3 weeks from 7 October 2015 to 31 October 2015 of GBP1m. Sales are 5.1% above the corresponding prior period due to strong growth in Peppermint, Conviviality Trading’s festivals and events business that was acquired on 31 December 2015.
The Company is making strong progress with the integration of Matthew Clark and Bibendum PLB Group ahead of plan and the plan to deliver synergies remains on track. Conviviality continues to perform in line with market expectations for the 52 week period ending 30 April 2017.
Conviviality will announce its Half Year Results for the 26 weeks to 30 October 2016 on 30 January 2017. The Group is also holding a capital markets day for investors and sell-side analysts at 2.00pm on 2 November. Details of the event can be obtained from Investec and FTI Consulting.
