Bargain Booze owner Conviviality sees turnover increase as empire expands
Bargain Booze and Wine Rack owner Conviviality grew retail revenues by 0.8% to £366.9 million in the past year thanks to growing like-for-likes and store openings.
The number of stores in the empire swelled by 15% to 716 in the year to May 1, 2016, thanks in part to the acquisition of 37 GT News shops.
Like-for-like sales for franchisees were up 1.3%, a strong turnaround after they were down 1.7% a year ago.
Overall turnover soared at Conviviality on the back of its voracious expansion into wholesale. It snapped up Matthew Clark, the UK’s biggest independent on-trade supplier, for £200 million in March 2015 and followed that up by purchasing Bibendum PLB for £60 million in May this year.
It also bought a stake in events company Peppermint and has continued to open new stores, with the second BB’s Warehouse recently joining the fold.
Revenue was up 137% to £864.5 million, of which £497 million came from Matthew Clark, while adjusted profit before tax grew 124% to £21.7 million.
Adjusted EBITDA (earnings before interest, taxation, depreciation and amortisation) was up 135% to £30.2 million.
In the past year 38 new franchisees joined the group and there was 42% increase in franchisees owning more than one site to 364.
Chief executive Diana Hunter said: “These strong results reflect the hard work of our employees, franchisees and suppliers. Our franchisees in the off-trade and customers in the on-trade remain at the heart of our business as we continue to work together to blend their entrepreneurial skill with the branding, ranging and wholesale expertise of Conviviality.
“The experienced management team in place, coupled with the well invested and compelling businesses with market leading expertise and current trading in line with expectations, gives the board confidence for the future.
“We look to the year ahead with a stronger and more resilient business able to thrive in uncertain economic times. It is our intention to continue to deliver against our integration plan during the year, ensuring the benefits are realised from our transformational acquisitions.
“The performance of the businesses is encouraging, with the team’s relentless focus on serving their customers well and supporting franchisees in the retail business evidenced by the consistent delivery of results. We continue to review the market within which we trade ensuring that we strengthen our position as the UK’s leading drinks and impulse wholesaler and distributor.”