Revenues double at Conviviality
Conviviality has seen revenues more than double in the first half of the year, the first time its results have included Bibendum PLB, Matthew Clark and Peppermint.
Group revenues rose 211% to £783m in the 27 weeks to 30 October, it reported today, as the benefits of its acquisition of Bibendum PLB, events company Peppermint and on-trade supplier Matthew Clark were felt.
Revenue was up across its three newly formed business units, which each cater for a different section of the market. Conviviality Direct – covering the on-trade – saw sales of £515 million, a 5.2% increase, while brand and wine agency arm, Conviviality Trading also saw sales up 5.1% to £79 million , which was attributed to strong growth of the festival and trading business, Peppermint, that Conviviality acquired at the end of 2015.
Results at Conviviality Retail– which includes its franchised off-license business and retail stores, under the Bargain Booze, Bargain Booze Select Convenience and Wine Rack fascias – also rose, but at a slower rate of 2.5% for the full 27 week period, to £191m. Sales were £189 million in the comparable 26 weeks period, up from £184 million in the same 26 week period the year before, but like-for likes decreased -1.7%, which the company said reflected the comparisons against the prior year Summer marketing campaign. Like-for-like store revenues rose 1.1%.
City analysts Shore Capital noted the 1.7% like-for-like decrease was an improvement on the 2.1% decline in the company’s mid-July preliminary results announcement, although its financial model assumed a 2% for the year for the retail arm. But overall, it noted the company was “performing well”.
Chief executive officer Diana Hunter said she was pleased with the strong performance 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,” she said.
Earlier this week it announced a new two-year deal between its retail arm, Conviviality Retail and wholesaler Palmer and Harvey McLane (P&H) which will see P&H stock an unnamed number of Conviviality’s BWS range to its wholesale customers. It is the first time the retail arm of the business has undertaken to supply customers outside of its own core franchisee-base.
Bibendum also posted its annual results for 2015 at Companies House, covering the period before its acquisition, showing profit rose to more than £6.5m, from a 1.5m loss in 2014.