Bargain Booze enjoys profit uplift
Conviviality Retail, the owner of the Bargain Booze chain of off-licences, saw its pre-tax profit before exceptional items rise by 46.7% to £3.2 million in the half year to 26 October.
EBITDA increased by 9.1% to £4.5 million while revenue was £182.9 million compared to £183.7 million in the same period in the previous year.
Although average revenue per store per week edged up 0.7%, like-for-like franchisee retail sales were down 1.7% in the period. However, franchisee profits improved by 6.4%.
Diana Hunter, chief executive of Conviviality, said: "I am pleased with our first half year results which are in line with our expectations in a highly competitive market. Despite closures of underperforming stores in the period and the integration of the Rhythm and Booze units, sales have been maintained and store numbers have started to grow as we open higher quality outlets. This has led to increased profits for both the company and its franchisees.”
Now operating a total of 599 stores, Conviviality said its plans for expansion into Scotland through the Scotmid trial were progressing well.
The group said it enjoyed a “strong” Christmas trade in the two weeks to 4 January with growth 2.6% above last year. Like-for-like franchisee retail sales were up 1.2% in the period while average store sales were up 2.8% year-on-year.
Henry added: We now have a solid platform from which to accelerate franchisee growth, our pilot with Scotmid demonstrates the potential for Bargain Booze to expand throughout the UK, and with our strong balance sheet we have the ability to exploit growth opportunities as they arise. I am confident in the progress we have made and I would like to thank our franchisees, employees and suppliers for their commitment and the important part they all play in achieving these results."
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