Alcohol retail and wholesale giant Conviviality has posted falling profits amid its interim results, sending its share prices falling 12 per cent.
In the 26 weeks to October 29, the Bargain Booze and Wine Rack owner saw total revenues climb 9.2 per cent to £836.3 million, while retail sales grew 10 per cent.
Christmas retail sales were also positive, rising 12.3 per cent over the nine-week period to December 31.
This fell to 7.7 per cent in the two weeks to the end of the year.
Despite the rise in sales, profits across the group fell.
Pre-tax profits dropped 10.3 per cent in the half year, dropping 1.7 per cent after tax alongside a diluted earnings per share drop of 5.6 per cent.
“We have made deliberate choices to successfully grow market share and enhance the quality of future earnings by agreeing long term contracts with our larger customers and securing new national account customers,” chief executive Diana Hunter said.
“These gains in market share coupled with our continued strong sales demonstrates our competitive advantage, the broad customer base we have developed and the robust nature of Conviviality as the UK’s leading drinks wholesaler, distributor and solution provider to our Customers.
“As previously highlighted, cost initiatives for the second half of the current financial year provide confidence for both achieving current year board expectations, as well as the group’s longer-term performance.”