Advo Revenue Grows 6%
Advo, Windsor, CT, said this was achieved despite a grocery-clerk strike in Southern California, which ended in March. Advo estimated losing $3 million in revenue from Southern California grocers reducing their ad budgets.
Advo's advertising piece volumes grew 8.1 percent over the prior-year quarter, to 7.4 billion, and pieces per package grew 5.1 percent.
Total shared packages distributed were up 2.9 percent. Revenue per piece was down 1.8 percent, based on continued strong demand in lighter-weight and lower-price-point products as well as declines in the weights of advertising circulars due to the grocery strike.
"We are beginning to see revenues accelerate since the resolution of the California grocery strike," Advo chairman/CEO Gary Mulloy said. "This gives us confidence that our business will show continuing strength in the second half of our fiscal year."