Conviviality, the owner of the UK’s biggest drinks wholesaler Matthew Clark, has posted profits before tax of £22.5m – up by more than £13.4m or 147% on the same period last year.
The boost came on the back of sales, which rose more than 85% in the year to 30 April to £1,560m, up from £841m the previous year, it announced today in its final results.
In addition, the adjusted profit before tax doubled to £45.8m, an increase of 111% on the previous year, ‘demonstrating the significant strength of the combined group’, it noted, with around £6m of ‘synergies’ made over the year due to the quicker than expected integration of its newly acquired businesses and ‘significant progress’ on its logistics strategy.
Adjusted EBITDA also doubled, up from £30.2m to £60.9m, and net debt grew below expectations, to £95.7m.
Conviviality Direct saw sales up 6.4%, to £1.04 billion, and it noted that Bibendum wine customers were increasingly buying across all categories, showing penetration increasing from 5% to 12%, with spirits at Bibendum’s regional business up 43.7% and business up by 21%, it said
Conviviality Trading also saw sales up 1% to £146m, with sales at events up 37% over the previous year, and sales at events subsidiary Peppermint up 46% over the year.
Chief executive officer Diana Hunter said she was pleased to report the strong results, that demonstrated the company’s “focus and commitment” as well as its new entrepreneurial and innovative culture and strong ties with its supplier partners.
“The balance we have created across the enlarged group, and resilience this creates, gives us confidence in the future success of the business,” she said. “We firmly believe there is exciting potential for significant organic growth of the our businesses, with further potential opportunities to build on the current platform.”
Over the past couple of years Conviviality has made a string of acquisitions, including Matthew Clark in October 2015, events agency Peppermint and Bibendum PLB in May 2016. The company now supplies the multiple grocers, independent off-trade and its own franchised businesses, as well as the on-trade and events.