LONDON (Alliance News) - Conviviality PLC on Friday reported growth in sales in its recently-ended financial year and said earnings before interest, tax, depreciation and amortisation are expected to be marginally ahead of market expectations.
The alcohol retailer and wholesaler said group sales in the 53 weeks ended May 1 more than doubled to GBP864 million from GBP364 the year before, benefiting from its "transformational" acquisition of Matthew Clark in October.
Ebitda is expected to marginally beat market expectations and net debt is expected to be at GBP87 million at the year end.
During the year, Conviviality Retail opened 126 stores, while the number of store closures fell to 34 from 63 the prior year, resulting in net store growth of 92 and an increase in the total number of stores to 716.
Conviviality Retail also attracted 38 new franchisees, taking the number of stores owned by multi-site franchisees to 364.
Conviviality said wholesale sales were in line with last year, while like-for-like retail sales generated by franchise stores improved to a 1.3% decline from a 1.7% decline the year before. Wine Rack continued to perform well, with like-for-like sales up by 3.2%.
The company said Matthew Clark has traded strongly since acquisition, with sales up by 4.9%. The number of outlets supplied has increased by 2.9% since acquisition with the number of customers also 2.9% higher.
Conviviality added that its recently-approved acquisition of Bibendum PLB Group "provides further opportunities and benefits to the group" and that a detailed integration plan is now in place.
"We look forward to a strong set of results reflecting our transition to being the UK's leading independent alcohol wholesaler, serving consumers through the on-trade and through its franchise retail estate," Chief Executive Diana Hunter said in a statement.
"The acquisitions of Matthew Clark, Peppermint and Bibendum PLB Group enable Conviviality to fulfil its aim to satisfy all consumer drinking occasions, enabling it to have unrivalled insight and expertise as the drinks sector's leading wholesaler and distributor," she added.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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