Q4 trading update for the period ended 2 April 2017

Highlights:

  •  Strong Q4 performance with total sales of £299m, +2.2% on a like for like basis with last year.  
  • Very strong non-tobacco sales of £210m, +4.9% on a like for like basis, with tobacco sales falling 3.1%, better than the wider market
  • Sales driven by strong growth in member numbers with 225 new stores in Q4, compared to 113 last year. (Net of losses this is 160 vs 46).
  • Total number of retail sites served by Nisa was 3,466 in the year to 2nd April 2017.
  • Full year EBITDA* is expected to be £8.5m (FY16: £7.3m**), in line with expectations.

Notes:

* The financial figures are preliminary to audit. EBITDA is excluding exceptional costs
** FY16 53 weeks, FY17 52 weeks

                 

The strong performance was aided significantly by an improving offer, which included more investment in price and promotions, consumer leaflet development and an award winning own label range, along with an increasing number of new store openings during the period.

Nisa previously reported improved Christmas trading, assisted by increased investment in Christmas promotions, which had driven a 2.7% rise in total sales to £235.6m. Nisa’s trading update demonstrates this momentum has continued through the last quarter, putting the business in a positive position for the new financial year.

As Nisa marks its 40###sup/sup### anniversary of supplying and supporting independent retailers and wholesalers, the company will continue to focus on delivering an offer that will help its members drive footfall and profit in stores, while encouraging growth and sustainability for the Nisa business.         

Nick Read, CEO of Nisa Retail Limited, commented: “I am very happy to see sales and recruitment on an upward trajectory, giving us real momentum coming out of Q4. I am pleased to report further progress against our 3-year strategic plan to focus on Heritage, range optimisation and lowering our cost to serve, while targeting greater scale.”

The UK Convenience market was valued at £37.5bn in 2016, an increase of 1.2% on the prior year. There are approximately 47,227 convenience stores in the UK. Chilled food is the lead revenue generating category for the stores, having recently knocked tobacco from the top spot. The total convenience market is projected to grow to £41.9bn by 2021.

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