Bargain Booze owner Conviviality has revealed that its profits more doubled over the last year, boosted by acquisitions and improved trading in its retail stores.
During the 52 weeks to 30 April 2017, the group’s adjusted pre-tax profits jumped 111% to £45.8m on revenue up 85% to £1.56bn. Reported pre-tax profits were up 147% to £22.5m. The figures were driven by the acquisitions of Matthew Clark and Bibendum, which are currently being integrated and delivered synergies of £6m during the period.
Meanwhile, underlying sales for each of its business units were strong with good organic growth. Sales in its wholesale unit Conviviality Direct rose 6.4% to £1.04bn, whilst sales in its Retail division increased 6.1% to £374m. Sales at Conviviality Trading were up 1% to £146m.
Retail franchisee like-for-like sales were down 1% over the year but edged up 0.5% in the second half. 39 new franchisees joined the group in the period and Conviviality Retail now has 352 franchisees running approximately 700 stores operating under the Bargain Booze, Select Convenience and Wine Rack banners.
In the first nine weeks of its new financial year, sales at Conviviality Direct were up 9%, whilst like-for-likes in its retail unit rose 0.5%, with Wine Rack growing by 4%.
The group said it had been a “transformational year” with Chief Executive Diana Hunter commenting: “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.”