Nisa Retail Announces Strong Christmas Trading

OREANDA-NEWS. Nisa Retail, the specialist delivered wholesaler and convenience retail expert, is pleased to announce a positive Christmas trading period for the 10 weeks to 3^rd January 2016. 

· Nisa swings into profit, reversing the significant loss incurred last year  over the Christmas period

· Chill leads category performance, growing 23.8%, or £8.2m to £42.9m

· Profit growth reflects improved trading margin, distribution efficiencies and reduced  fixed costs

· New management team confirm full year EBITDA expectations of £7.2m as strategy gains momentum

· Performance marks significant further progress for new management team's turnaround plans 

Nisa is pleased to report a significant improvement in profitability over the 10 week Christmas trading period to 3 January 2016.  Profit for the period was £520,000, compared to a loss of £2.4m in 2014.  The festive period also saw Nisa produce volume growth of 5.7%, while sales value rose 6.3% year on year to £254.3m, against a backdrop of sales deflation of 2.1%. 

The improved Christmas trading performance was assisted by sharply priced promotional offers that were well received by members, and came as the firm's turnaround strategy continued to gain momentum. 

The stand out category performer was chill, growing 23.8% or £8.2m to £42.9m, further emphasising the growing importance of fresh and chill for the convenience sector.  Confectionery, a seasonal favourite, also registered a sales increase of 12.8% to £17.1m in the 10 week period. 

Nisa's turnaround strategy, which started with the appointment of Nick Read as CEO 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 the company's growth plans. 

Nisa's Christmas trading performance adds to the recent positive momentum from the turnaround plan, and re-confirms Management's full year EBITDA target of £7.2m. 

Nick Read, CEO Nisa Retail, commented: "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." 

About Nisa Retail Limited

Nisa is a unique member owned organisation, helping independent retailers remain competitive in the food and drink markets. With the retail sector being largely dominated by the multiples, Nisa's objective is to create benefit, including negotiating the best deals on products, to allow its members to compete effectively. Nisa supports over 1,300 local retailers and 3,000 stores across the UK. Some operate under the Nisa brand and others under their own names. Nisa supplies the stock they need and the retail support that helps them to grow their business.  Nick Read was appointed CEO in February 2015, with a remit to return the business to profitability.