Forecourt retailer Applegreen has seen its full-year profits rise by 20% at constant-currency levels for 2016, with the group posting a revenue increase of 9%, to €1.18 billion.
The group, which is based in Ireland and has operations in both the UK and the United States, saw like-for-like growth in non-fuel gross profit rise by 9% at constant-currency levels.
Adjusted EBITDA increased by 11% from €28.9 million in full-year 2015, to €32.0 million in full-year 2016.
Strong Results
“We are pleased to report another strong set of results for the business," said Bob Etchingham, Applegreen's chief executive. "Our food and store sales were particularly strong in the Republic of Ireland during the year, while the UK had a good performance in the second six months. Fuel margin was impacted by the rising oil price."
Applegreen grew its estate to 243 sites as of 31 December last year, up from 200 at the end of 2015, investing €60.3 million in capex across the year. Some 32 of its new sites included a Freshii food offering.
Etchingham also commented on the prospective impact that the UK leaving the EU could have on the business, saying, "The UK’s decision to exit the EU has resulted in a weaker sterling, which has impacted on the consolidated euro results for the company. To date, this decision has had no further impact on the business.”
Industry Recognition
Etchingham said, "[The group is] delighted that the quality of our sites has received strong industry recognition during the year," with its site in Lisburn, Northern Ireland, winning the prestigious NACS Insight 2016 International Convenience Retailer of the Year Award.
Looking ahead to the coming year, Etchingham added, "Our core Irish market is delivering good growth in non-fuel sales, in particular, while fuel-margin experience has been in line with 2016. The UK has also begun the year positively, and whilst mindful of the uncertainties created by the Brexit process, we expect to continue to grow our operations during the year.”
© 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.
