UK-based convenience group McColl's has reported a 2.3% growth in revenue, to £1.25 billion (€1.36 billion), for full-year 2020.
This performance reflects strong demand since the onset of the COVID-19 pandemic, partly offset by store closures, the company said in a trading update.
Like-for-like sales grew by 12.0% during the financial year, driven by strong performance in beer, wine and spirits, as well as fresh food and tobacco.
'Strong Demand'
Chief executive, Jonathan Miller, said, "Since the onset of the pandemic, we have seen strong demand driven by our customer offer and the positioning of our stores in key neighbourhood locations.
"At the same time, we have faced significant COVID-19 related costs and our operating margins have been reduced by a change in customer behaviour and product mix."
The company expects adjusted EBITDA (pre-IFRS 16) in the range of £29 million (€31.6 million) to £30 million (€32.7 million), down from £32.1 million (€34.97 million) in 2019.
Post IFRS 16, adjusted EBITDA is expected to be around £58 million (€63.2 million), McColl's added.
Outlook
The company expects its sales mix to normalise and LFL revenue growth to moderate over the next year.
It expects to achieve incremental sales in grocery, fresh food, beer, wine, and spirits by focussing on the larger convenience store format.
The retailer is working on improving efficiency, investing in systems, processes, and space optimisation.
McColl's added that the board remains confident in its strategy as it positions itself for sustained profitable growth in the coming years.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
