Conviviality half-year revenue up 211% to £782m

Diana Hunter

Crewe-based alcohol wholesaler and distributor Conviviality Plc — which owns Bargain Booze and Wine Rack — said its revenue soared 211% to £782.5 million for the 26 weeks to October 30, 2016.

Conviviality said current trading showed a 6.1% increase in group sales in November and December.

The leap in revenue followed the acquisitions of Matthew Clark in October 2015, Peppermint in December 2015 and Bibendum PLB Group in May 2016.

Conviviality said it now had access to more than 25,000 restaurants, hotels and bars, more than 700 franchise retail outlets, 400 independent specialists and multiple supermarkets.

It said total group unaudited pro forma revenues for the current financial year “are now over £1.5 billion underlining our significant scale and reach across the drinks industry.”

Conviviality shares rose slightly to about 260p, giving the firm a current stock market value of around £450 million.

Conviviality CEO Diana Hunter said: “These strong results demonstrate our competitive advantage, the broad customer base we have developed and the robust nature of Conviviality as the UK’s leading drinks wholesaler, distributor and solution provider to our customers. 

“We have successfully restructured to create three business units Conviviality Direct, Conviviality Retail and Conviviality Trading, each providing our customers and franchisees with unrivalled range, expert service and advice to meet their customer needs whilst providing our suppliers with unmatched access to routes to market across both the on and off trade. 

“The recent acquisitions have resulted in Conviviality being well positioned in its market with a resilient business model that provides unique positioning for its suppliers and customers. We are also pleased to report that the group continues to trade in line with expectations for the full year”

Profit before tax also soared, up 285% to £7.4 million.

Conviviality said interim dividend will be up 100% to 4.2p, “which is currently expected to represent approximately one third of the anticipated full year dividend.”