DUBLIN: Revenues advanced by 7.4 per cent at Applegreen in the first six months of the year, as the Irish petrol forecourt firm benefited from “particularly strong” growth in Ireland and saw an uplift in the UK post-Brexit. Applegreen expects its full-year earnings to be in line with expectations.
In the six months to June 30th, revenues rose by 7.4 per cent to €556 million, as the group’s pre-tax profit more than doubled to €7.5 million. Adjusted earnings (EBITDA) increased by 15 per cent from € 11.3 million in the first half of 2015, to €13 million in 2016. The group’s net debt position stood at €24 million as of June 30th.
Revenue in the Republic of Ireland increased by 12.7 per cent and gross profit increased by 20.3 per cent. Like for like food and store sales and gross margin both increased by 8.5 per cent. Fuel gross profit increased by 20.5 per cent year on year including a like for like increase of 6.9 per cent. Applegreen chief executive Bob Etchingham, CEO said that growth was “particularly strong” in the Republic of Ireland where its service areas and recent upgrades are well positioned to capture demand.
“In the UK, a more competitive environment impacted growth in the early part of the year and while this abated, we also noted a more cautious consumer in advance of the Brexit vote,” he said.
Applegreen opened two new service area sites and added three petrol filling stations in the Republic of Ireland in the first six months of the year, while it also expanded its network of dealer sites by nine during the period. In the UK, site numbers increased by seven comprising five petrol filling stations and two service areas. Applegreen now operates 220 sites, with a “strong pipeline” of new sites, particularly in the UK. “Trading since the end of June has been positive and has shown improvement particularly in the UK. Apart from the impact of the weaker sterling on the translation of our earnings, we expect our full year performance to be in line with expectations.”
While Mr Etchingham noted that the UK’s decision to exit the EU in late June has not yet impacted the group’s figures, it’s still a concern.
“Looking to the future, the lower sterling euro exchange rate will obviously impact on our consolidated figures but otherwise it is too early to assess what impact the decision will have on our business,” he said.
