Conviviality raises glass to sparkling Christmas
A SPARKLING Christmas has helped Crewe –based Conviviality, owner of Bargain Booze and Wine Rack, to impressive half-year results.
The acquisition of Matthew Clark, the UK’s leading independent wholesaler and distributor of alcoholic beverages to the trade market, also boosted its performance in the period ending November 1 2015.
Revenue soared 38% to £252m and the company recorded adjusted pre-tax profits of £3.8m, a rise of 19%. EBITDA rose 43% to £6.5m.
Net debt of £98.5m (H1 FY15: net cash £1.2m) reflected the acquisition of Clark.
Conviviality said the integration of the Matthew Clark business was ahead of plan, following the deal which completed on October 7.
Clark revenue from October 7 to November 1 was up 2.7% to £60.6m compared to the same period in 2014 when it was £59m.
Conviviality enjoyed strong Christmas trading in the two peak weeks to January 3 with group sales growth 13% above last year.
Like-for-like retail sales during the two peak weeks were up by 1.1% (Wine Rack up 11.1%) while Champagne and sparkling wine saw sales increase 31% with four bottles of Prosecco sold every minute in the peak trading weeks. Sales of premium bottle ales were up 300% and cases of craft ales rose 218%.
Matthew Clark sales to outlets increased 20% in the two weeks to January 3.
Conviviality chief executive Diana Hunter said: “This is a strong set of results during a period of significant transformational change.
“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.
“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.”
