Irish-based forecourt operator Applegreen plc has seen its gross profit rise by a fifth (20%, or 24% at constant-currency levels) in the first half of its financial year, to 30 June.
Revenue for the period was up by 21%, to €672.5 million, while adjusted EBITDA was up by 28% (31% on a constant-currency basis).
The group invested around €29.8 million in capex during the period, as it grew its estate by 32 sites, to a total of 275 locations, as of 30 June. Some 17 new food outlets were also opened.
Favourable Margins
"We are very pleased to report another strong set of results for the first half of the financial year,” said Bob Etchingham, Applegreen's chief executive. “This performance was underpinned by favourable fuel margins [and] very strong like-for-like growth in non-fuel revenues and margins, together with continued investment in the expansion of the estate.
"A further 32 sites were added to the estate in H1 2017, and this investment activity has continued since the period end, as we identify opportunities for growth across our three markets," Etchingham continued.
"We now have a good platform for growth in each of our three markets and are well positioned for the seasonally important second half of the year. Overall, we remain confident in the prospects for the business in 2017," he concluded.
Expansion
Following the closing of the half, Applegreen announced the proposed acquisition – subject to competition approval – of the Brandi Group, a 42-site retail operation based in Columbia, South Carolina, and the Carsley Group, a seven-site forecourt retail operation based in the UK, expanding its operations in both the US and Britain, respectively.
Commenting on its performance, Darren Shirley of Shore Capital Stockbrokers said, “Applegreen has delivered H1 2017 results that confirm another period of strong, broad-based progress, with growth driven by an attractive combination of site increases and development, robust LFL sales advances, and healthy margin expansion.
“Applegreen has developed a three-pronged strategy that should deliver superior growth and returns over the short, medium and long terms, making for an attractive investment proposition.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
