Irish forecourt retailer Applegreen has posted a 27% increase in group revenue for the first half of its financial year, of €672.5 million. On a constant currency basis, revenue was up 30%.
Gross profit at the firm was up 33% in the period to 30 June, the company said, or 36% higher on a constant currency basis.
Notably, the group posted a 3.5% like-for-like increase in non-fuel gross profit, for its food and store operations, at constant currency levels.
Increased Capex
Capital expenditure for the period was €30.3 million, with the group growing its estate by 26 sites during the period, to reach a total of 368 sites. It also opened 14 new food outlets, bringing its total to 274 of such outlets.
Announcing its half-year figures, Applegreen also noted that an agreement to lease a network of 43 petrol filling station sites in Florida from CrossAmerica Partners LP is expected to close in September 2018. Post results period, Applegreen also announced in August that it had acquired a controlling stake in UK motorway service operator Welcome Break.
'Exciting Phase Of Growth'
"We are pleased with the performance of our business during 2018. Applegreen is entering an exciting phase of growth in the UK service area market with the recent announcement of the Welcome Break transaction," said Bob Etchingham, Applegreen chief executive.
"This will be transformational for Applegreen by giving us critical mass in a key market and is expected to close in Q4 2018."
Etchingham did note, however, that inclement weather in March did impact the group's performance somewhat.
"Our financial performance for the first six months of 2018 has been robust notwithstanding the difficult trading conditions caused by the exceptional weather in March, especially in our Irish business," he added. "Apart from the impact of this one off event, the underlying business continues to perform well and we remain confident in the prospects for the business in 2018."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
