Applegreen Posts Strong Year End Results

Forecourt retailer Applegreen has posted robust year end results, bolstered by strong food sales and its expansion in Ireland, the UK and US.

During the year ended 31 December 2016, the Ireland-based firm saw its revenue grow 9% to €1.18bn with adjusted pre-tax profits up 18.6% to €21m.

Applegreen expanded its portfolio with 43 new sites during the period, including 22 in the Ireland, 15 in the UK and six in the US. It continued to see like-for-like growth in food across its estate with it also opening 32 new food outlets, including the launch of its new food offering – Freshii.

Revenues in Ireland increased by 11.4% and gross profit rose by 15%. Like-for-like food and store sales increased year-on-year by 9.3% and related gross profit grew by 10.2%.

In the UK, revenue increased by 17.1% and gross profit by 28.8% on a constant currency basis, largely due to the continued expansion of its UK estate. Combined food and store sales and gross profit rose year-on-year on a constant currency basis by 32.9% and 42.1% respectively. On a like-for-like constant currency basis non-fuel sales were flat, while related gross profit grew by 3.9% reflecting strong growth in food and better margins in store.

Chief Executive Bob Etchingham said: “We are pleased to report another strong set of results for the business. 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.”

He added: “Fuel margin was impacted by the rising oil price and in Ireland by the rising proportion of fuel card of the total fuel volume. 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.”

Looking ahead, the group said it had strong pipeline of further developments of both Service Area sites and petrol filling stations across its markets.

It added: “We are confident of making further progress during 2017. 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 while aware of the uncertainties created by the Brexit process we expect to continue to experience growth across our operations during the year.”