- Profits climb 147%
- Sales up 85%
- Current trading in line with expectations
Conviviality, the drinks specialist, has reported profit before tax up 147% to £22.5m after a “transformational year”.
Conviviality’s revenues climbed 85% to £1.56bn.
The distribution, foodservice and retail group owns fascias including Bargain Booze and Wine Rack.
The retail division, headed by former Argos director David Robinson, generated sales of £378m, a 6.1% increase.
Franchisee like-for-likes edged down 1% over the year but inched up 0.5% in the second half.
In the first nine weeks of the current year, like-for-likes at the retail arm were also up 0.5% and at Wine Rack by 4%.
Conviviality’s retail arm attracted 39 new franchisees, and 23 increased their store portfolios during the year, bringing the total number of franchisees to 352 running approximately 700 stores.
The group, which over the past two years has bought drinks businesses Matthew Clark and Bibendum, described the period as “a transformational year with the integration of the recent acquisitions ahead of plan, resulting in a doubling of profit and delivery of £6m of synergies”.
Conviviality chief executive Diana Hunter said: “I am pleased to report a strong set of results that demonstrate our focus and commitment to serving our customers well, working in partnership with our suppliers and delivering against our strategic plans.
“The balance we have created across the enlarged group, and resilience this creates, gives us confidence in the future success of the business.
“Importantly the culture that we have created at Conviviality, with its entrepreneurial and innovative focus, remains true across the group and we firmly believe there is exciting potential for significant organic growth for our businesses, with further potential opportunities to build on the current platform.”