Nisa reports strong Christmas trading performance
Symbol group Nisa has reported a significant improvement in profitability over its 10 week Christmas trading period to 3 January 2016.
Profit for the period was £520,000 compared to a loss of £2.4 million in 2014. The festive period also saw Nisa produce volume growth of 5.7%, while sales value rose 6.3% year-on-year to £254.3 million.
Nisa said the improved Christmas performance was driven by sharply priced promotional offers that were well received by members, and came as the company’s turnaround strategy continued to gain momentum.
The stand out category performer was chilled items where sales grew by 23.8%. Another strong performer was confectionery with a sales increase of 12.8%.
Nisa said its turnaround strategy, which started with the appointment of Nick Read as chief executive in February 2015, has led to an improvement in profitability, driven by sales and volume growth, an enhanced trading margin, better distribution efficiencies and a successful reduction of fixed costs.
In October the business also secured a new two year banking facility, providing an increased level of finance to support Nisa's growth plans.
Commenting on the results, Read said: “It is very pleasing to report improved trading, as many of our initiatives gain momentum. Last year the business made a loss during the Christmas period, so to register a profit of over half a million pounds, in a challenging marketplace and during a turnaround year for Nisa, is particularly gratifying. Our continued investment in a strong own brand range and competitive pricing has helped our independent retailer members to perform well through a key seasonal trading period – underpinning Nisa’s position as the partner of choice for convenience retailers.”
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