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Conviviality plc

Conviviality PLC A strong set of results demonstrate focus and commitment

Conviviality Plc (LON:CVR), the UK’s leading independent wholesaler and distributor of alcohol and impulse serving consumers through its Franchised retail outlets and through hospitality and food service, announced today its final results for the 52 weeks to 30 April 2017 (FY16: 53 weeks to 1 May 2016).

Group Financial Highlights

· Revenue up 85% to £1,560m* (FY16: £841m**)

· Gross margin up 1.3% points to 13.3% (FY16: 12.0%)

· Adjusted EBITDA1 up 102% to £60.9m (FY16: £30.2m)

· Adjusted profit before tax2 up 111% to £45.8m (FY16: £21.7m)

· Profit before tax up 147% to £22.5m (FY16: £9.1m)

· Adjusted fully diluted EPS3 up 48% to 21.0p (FY16: 14.2p)

· Fully diluted EPS up 136% to 10.4p (FY16: 4.4p)

· Free cash flow4 up 349% to £51.2m (FY16: £11.4m)

· Net debt of £95.7m (FY16: £86.1m)

· Full year dividend up 33% to 12.6p (FY16: full year dividend 9.5p)

Operational Highlights

· Acquired Bibendum PLB Group on 20 May 2016 and integrated successfully into our organisation and new operational structure

· A transformational year with the integration of the recent acquisitions ahead of plan, resulting in a doubling of profit and delivery of £6m of synergies in the financial year

· 5.8% increase in revenue compared to the corresponding prior period5 with all areas of the business performing strongly

· Significant progress made on the Group’s logistics improvement strategy with a reorganisation of our depots including the opening of a new stockless outbase in Dundee, as well as more efficient route planning introduced with positive results to date

· Continued growth of our digital platform with 4,645 customers now choosing to place orders this way

Conviviality Direct Highlights

· Sales of £1,040m, a 6.4% increase in revenue compared to the corresponding prior period5

· 4.8% increase in revenue per outlet and 235 new customers served during the year

· Bibendum Wine customers demonstrating greater penetration with customers buying all categories increasing from 5% to 12%

Conviviality Retail Highlights

· Sales of £378m, a 6.1% increase in revenue over the corresponding prior period5

· 0.5% increase in Franchisee like for like retail sales6 in the second half and (1.0)% for the year

· 39 new Franchisees joined the group and 23 Franchisees increased their store portfolios during the year, bringing the total number of Franchisees to 352 and more than 700 retail stores

Conviviality Trading

· Sales of £146m, a 1.0% increase in sales compared to the corresponding prior period5

· Over 100 festivals and outdoor events delivered during the year with sales up 37% on the prior year

· Significant product innovation with the successful launch of Whipstitch own label cider and Rolling Calf spiced rum

· Walker and Wodehouse saw the renewal of the HM The Queen’s Royal Warrant

Trading for the 9 weeks ended 2 July 2017

The Company and its businesses are trading in line with Board expectations. Conviviality Direct continues to trade strongly with sales 9.0% above last year. It is particularly pleasing to see the continued improvement and confidence of Conviviality Retail with like for like sales +0.5% and Wine Rack up 4.0%. Conviviality Trading is 7.6% above last year as a result of its customers continuing to recognise the expertise and support of the agency business. The Events business increased the number of events this year versus last year by 27 % to 140.

Diana Hunter, Chief Executive Officer of Conviviality Plc, said: “I am pleased to report a strong set of results that demonstrate our focus and commitment to serving our customers well, working in partnership with our suppliers and delivering against our strategic plans. The balance we have created across the enlarged Group, and resilience this creates, gives us confidence in the future success of the business. Importantly the culture that we have created at Conviviality, with its entrepreneurial and innovative focus, remains true across the Group and we firmly believe there is exciting potential for significant organic growth for our businesses, with further potential opportunities to build on the current platform.”

There will be a presentation for analysts at the offices of FTI Consulting (200 Aldersgate, EC1A 4HD) at 9.30am today, 17 July 2017.

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