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Conviviality reports soaring half year profits

Published:  30 January, 2017

Conviviality, the UK's largest drinks distributor, has reported triple digit growth in its half year results, issued today.

With revenue up by 211% to £782.5million, and pre tax profits by 285% to £7.4million (expected given the acquisition of Bibendum/PLB within the last 12 months), the wine and spirit giant recorded 4.4% sales growth across the group over the previous reporting period, with 6.1% increase over the Christmas period, and 2.1% like for like sales in the retail sector for the 6 weeks to January 1, 2017. 

All three business units have reported positive growth; Conviviality Direct, which encompasses Matthew Clark and Bibendum/PLB has shown a 5.2% increase in sales, with a 1.5% increase in number of outlets supplied, with average sales per outlet growing by 3.8%.

The alignment of the two distributors - which will continue to retain separate identities but work together to offer the optimum solution to customers, across the beers, wines and spirits business - has resulted in a 100% increase of the number of Bibendum customers who now purchase all product categories via the group. 

Conviviality Retail, which is comprised of Bargain Booze, Bargain Booze Select Convenience, and Wine Rack, shows a 2.5% increase in sales, with franchisee margin up by 1.8%, as a result of improved group buying terms. 

Conviviality Trading,which includes PLB, Walker & Woodhouse, together with events businesses Peppermint Bars and Wondering Wine, reported a 5.1% increase in sales. 

Conviviality recently announced the alignment of their distribution network, servicing over 25,000 customers, 358 franchisees and over 700 stores in the UK, operating out of 18 depots across the UK. 

Diana Hunter, CEO of Conviviality, said: "We aim to be the first choice for drinks distribution throughout the UK. These strong half year results demonstrate our competitive advantage, as the UK's leading drinks wholesaler.

"We have successfully restructured to create three business units, each providing customers and franchisees with unrivalled range, expert service and advice, whilst providing our suppliers with unmatched access to routes to market in both off and on trade". 

For more in depth analysis, read our interview with Diana Hunter in the February edition of Harpers Wine & Spirit.