Conviviality swings to first half profit
Conviviality has reported strong half-year results following the major restructure last year, which segmented its business into three separate units.
The company saw revenue increase by 211% to £782.5m for the half-year to the end of October 2016. Pre-tax profit came in at £7.4m, compared to a £4m loss in the same period last year. Each of its three business segments saw revenue grow.
The results reflect the “completed complementary acquisition” of Bibendum PLB Group as well as the “successful integration of strategic acquisitions” ahead of plan and on track to deliver stated synergies of £6m for 2017.
For its Retail arm sale increased by 2.5% compared to the corresponding prior period.
Diana Hunter, chief executive officer, said: “These strong results 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. We have successfully restructured to create three business units Conviviality Direct, Conviviality Retail and Conviviality Trading, each providing our customers and Franchisees with unrivalled range, expert service and advice to meet their customer needs while providing our suppliers with unmatched access to routes to market across both the on and off trade.
“The recent acquisitions have resulted in Conviviality being well positioned in its market with a resilient business model that provides unique positioning for its suppliers and customers. We are also pleased to report that the Group continues to trade in line with expectations for the full year.”
More recently Conviviality announced it had entered into a two-year agreement with Palmer & Harvey to provide lower volume beers, wines and spirits, who in turn will supply the Group with tobacco.