Conviviality PLC Trading Update (1733G)

TIDMCVR

RNS Number : 1733G

Conviviality PLC

25 May 2017

25 May 2017

Conviviality Plc

("Conviviality", the "Company", or the "Group")

Trading Update for the Year Ended 30 April 2017

A unique business model delivering strong growth

Conviviality Plc, the UK's leading independent wholesaler and distributor of alcohol and impulse serving customers through its franchised retail outlets and through hospitality and food service, provides an update on trading for the 52 weeks to 30 April 2017 (FY16: 53 weeks to 1 May 2016).

The Company has traded well during the 52 week period, in line with the Board's expectations, with total Group sales nearly doubling to GBP1,560m (FY16 GBP841m*). Net debt at 30 April 2017 was GBP99 million, comfortably below Conviviality's Net Debt target of 2.0x net debt / EBITDA.

During the past financial year the transformation of Conviviality from its foundations as a franchised off licence business into the UK's leading drinks wholesaler and distributor has been further underpinned with the acquisition of Bibendum PLB Group on the 20 May 2016. The integration of both Matthew Clark and Bibendum PLB Group is progressing well and the plan to deliver the stated synergies remains on track.

Conviviality has strengthened its management team and reorganised its activities into three business units; Conviviality Direct, Conviviality Retail and Conviviality Trading, enabling each to focus on serving its customers and suppliers. Underlying sales for each business unit have been strong throughout the year with good organic growth compared to the corresponding prior period:

   --      Conviviality Direct sales up 6.4% 
   --      Conviviality Retail sales up 6.1% 
   --      Conviviality Trading sales up 1.0% 

Conviviality Direct

-- Sales of GBP1,040m in the 52 weeks to 30 April 2017; up 6.4% on the corresponding prior period

-- Growth has been driven by both a 1.6% increase in outlets and an increase in sales per outlet of 4.8%; a strong indication of customers switching to a "one stop shop" model as they benefit from the combined range and expertise of Matthew Clark and Bibendum

Conviviality Retail

-- Sales of GBP374m in the 52 weeks to 30 April 2017 (FY 2016: GBP359m*); up 6.1% on the corresponding prior 52 week period

-- Like for Like sales in the second half of the year (26 weeks to 30 April 2017) improved to +0.5% (H2 2016: (2.0)%)

-- Like for Like sales (excluding tobacco) in the second half of the year (26 weeks to 30 April 2017) improved to +1.5% (H2 2016: excluding tobacco (2.3)%)

Conviviality Trading

-- Sales of GBP146m in the 52 weeks to 30 April 2017; up 1.0% on the corresponding prior period

-- Growth reflects the agency business benefitting from the wider reach the Group has to offer, coupled with new customers recognising the differentiation they can access from Conviviality's events and experiential marketing business.

Diana Hunter, Chief Executive Officer of Conviviality said:

"We have come to the end of an unprecedented year of change and I am pleased to report a strong trading performance for the Group and for each of its business units. It is encouraging to see our customers and suppliers benefiting from the skills and the expertise of the enlarged Group, its scale and reach and its positioning as the UK's leading drinks wholesaler and distributor.

"We have made great progress on the integration of Matthew Clark and the acquisition and integration of Bibendum PLB Group. Our focus will continue to be on improving the business and ensuring that benefits are realised from our greater scale, as we drive efficiencies for the Group and greater service for our customers.

"I would like to thank our passionate and talented team, as well as our suppliers, our customers and our Franchisees, for their loyal support through what continues to be an exciting journey for Conviviality."

*FY16 revenue has been restated to reclassify retrospective discounts given to customers and franchise fees earned from cost of goods sold to revenue and from operating costs to revenue respectively.

   -     Ends - 

Enquiries:

 
 Conviviality Plc                     Tel: [phone] 
  Diana Hunter, Chief Executive 
  Officer 
  Andrew Humphreys, Chief Financial 
  Officer 
 Investec Bank plc (NOMAD &           Tel: [phone] 
  Joint Broker) 
  Garry Levin / David Flin / 
  Daniel Adams 
 Zeus Capital (Joint Broker)          Tel: [phone] 
  John Goold / Nick Cowles 
 FTI Consulting                       Tel: [phone] 
  Jonathon Brill / Georgina Goodhew 
  / Fiona Walker 
 

Notes to Editors

Conviviality's core aim is to be the drinks and impulse sector's leading specialist wholesaler and distributor to the on and off trade by being the most knowledgeable and inspiring partner for our customers. Conviviality now serves over 25,000 restaurants, hotels and bars, over 700 franchised retail outlets, over 400 independent specialists, a large number of festivals and events, and the major multiple supermarkets. Conviviality offers its customers a range of over 10,000 alcohol SKU's sourced globally from specialist producers and brand owners that enable its customers to tailor their ranges to meet their target consumer needs and its suppliers to benefit from the scale and reach that the Group has to offer.

Conviviality Direct: The UK's largest independent wholesaler to the on-trade. Conviviality Direct serves over 25,000 outlets from national prestige hotel chains to independent food-led pubs and restaurants trading through two brands, Matthew Clark and Bibendum.

Conviviality Retail: Our 370 Franchisees are local people, passionate about their customers and the communities where they trade. Our Franchisees make a real difference in their local communities through a relentless focus on meeting consumer needs. We have 700 stores across our Bargain Booze, Bargain Booze Select Convenience and Wine Rack Brands. Conviviality Retail's role it to build strong relationships with our franchisees, driving sustainable relationships and profitable growth.

Conviviality Trading: Conviviality Trading brings together our specialist brand agency businesses, PLB, Catalyst and Instil along with outdoor and events specialists Peppermint and brand activation agency Elastic. Together the team develop new products through their whole life-cycle, introduce them to market in the on and off-trade, maximising distribution and building brands and additionally work with suppliers to activate products for consumers at events and festivals.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 25, 2017 02:01 ET (06:01 GMT)