Conviviality shares sink 11% as profit falls

Conviviality CEO Diana Hunter

Shares of Crewe-based alcohol wholesaler and distributor Conviviality Plc — which owns Bargain Booze and Wine Rack — fell 11% on Monday after it said revenue for the 26 weeks to October 29 rose 9.2% to £836.3 million — but adjusted profit before tax fell 1.9% to £15.1 million.

Conviviality CEO Diana Hunter said: We have made deliberate choices to successfully grow market share and enhance the quality of future earnings by agreeing long term contracts with our larger customers and securing new national account customers.

“These gains in market share coupled with our continued strong sales demonstrates 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.

“As previously highlighted, cost initiatives for the second half of the current financial year provide confidence for both achieving current year board expectations, as well as the group’s longer-term performance.”