Forecourt retailer Applegreen has posted a 20.4% increase in gross profit in the first half of its financial year (+22.4% in constant currency).
The Ireland-based group, which also has operations in the UK and USA, reported a like-for-like increase in profit at constant currency of 5.5%, driven by increased food sales.
Revenue was up 7.4% to €556 million, with its Ireland operation showing 'robust like for like growth'. As of 30 June 2016, it operates 220 stores, up from 200 at year-end.
"We are pleased to report another strong set of results reflecting our performance in the first half of 2016," said Bob Etchingham, the group's chief executive.
"Growth was particularly strong in the Republic of Ireland where our Service Areas and recent upgrades are well positioned to capture the demand from positive consumer sentiment. 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."
Commenting on its performance, Davy Stockbrokers said that 'Applegreen has benefitted from new site openings in both Ireland and the UK. In H1 2016, Applegreen opened 20 new sites with 12 in Ireland and seven in the UK, of which two are MSAs in Northern Ireland.
'These new sites, combined with the increased contribution from the higher-margin food-to-go business, helped to deliver gross profit growth of 20.4% and adjusted EBITDA growth of 15%.'
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
