Conviviality celebrates strong half-year
A “transformational year” for British drinks distributor and retailer Conviviality has seen its H1 revenue rise by 38% to £252 million.
The group’s earnings-before-tax also jumped by 43% in the 27 weeks to 1 November, reaching £6.5m, and pre-tax profits reached £3.8m – a 19% increase on the same period last year.
Diana Hunter, the CEO, described it as “a strong set of results during a period of significant transformational change”.
The acquisition of on-trade distributor Matthew Clark in October had a big positive impact on the group’s results, which also covered its franchisee retail arm and wholesale businesses.
Between the purchase date of Matthew Clark on 7 October to 1 November, revenue was up 2.7% to £60.6m and earnings-before-tax saw a 10% jump to £2.1m.
The integration of Matthew Clark into the business is “significantly ahead of plan”, a statement from Conviviality said, with the full benefit of the acquisition expected to be felt by financial year 2017.
Alongside the half-year results, Conviviality reported a strong Christmas trading period, with sales increasing 13% in the two weeks to 3 January.
An average of four bottles of Prosecco were being sold every minute during this time, as the overall Champagne and Sparkling Wine category grew by 31%.
“With Matthew Clark we now have a firm foundation in the expansive on-trade market from which to build on, and our success over the important Christmas period gives us confidence that the second half will deliver further growth,” Hunter said.
“I am pleased with the progress we have made to bring our two businesses together. I would like to thank all of our people, our Franchisees, our on trade customers and our suppliers who have contributed to our success.”