UK alcohol wholesaler and distributor Conviviality has reported that revenue increased by 9.2%, to £836.3 million, in the first half of the year, which it attributes to strong gains in market share during the period.
The company saw EBITDA rise by 1.7%, to £23.3 million, however, profit after tax fell by 10.3%, to £5.2 million, due to increased sales to large national-account customers.
Conviviality reports that it gained 1,408 new on-trade customers during the first two quarters, including a ‘significant increase’ in both national and regional customers, with over 2,400 customers increasing their purchases year on year.
“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,” said Diana Hunter, CEO of Conviviality.
“These gains in market share, coupled with our continued strong sales, 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,” Hunter continued.
First-Half Performance
Conviviality’s direct supply business experienced a 6.9% increase in sales from Matthew Clarke and Bibendum, with a 1.2% increase in the number of outlets supplied and a 5.7% increase in revenue per outlet.
Meanwhile, the group’s retail unit, which includes the chains Bargain Booze, Wine Rack and Select Convenience, saw sales increase by 10% compared to the same period last year, with like-for-like sales up by 0.4% following the opening of 22 new stores in the first half of the year.
Elsewhere, sales went up by 9.6% at Conviviality Trading, with a 27% increase in event sales.
Looking ahead, the group says that it continues to trade in line with the board’s expectation for the full year.
“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,” added Hunter.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
