Revenue for Applegreen in the Republic of Ireland increased by 12.3% and gross profit increased by 16.5% for the year ended 31 December 2017. That's according to the petrol forecourt retailer's preliminary results which were published today.
Total fuel gross profit increased by 21.1% compared to 2016 and increased by 13.5% on a like-for-like basis. This reflected the impact of a strong fuel margin environment in the first part of the year, as well as the impact of the Joint Fuel Terminals acquisition in Dublin Port in the latter part of the year. Applegreen completed the acquisition of 50% interest in Joint Fuel Terminals in July 2017 for a purchase price of €15.7m. The terminal comprises a 20 acre site with storage capacity of 60,000 tonnes and is operated under a joint agreement with Valero. Like-for-like food and store sales increased year-on-year by 4.6% and related gross profit grew by 7.8%.
During the period Applegreen expanded its Republic of Ireland estate by 22 sites, which included three service area sites, seven petrol filling station sites and 12 dealer sites. During the period, eight sites were rebranded or upgraded, incorporating at least one new food offer in all cases. 88% of the ROI estate is now branded Applegreen. The retailer's dealer and fuel card volumes have shown significant growth and now account for 28% of ROI fuel volumes on a combined basis.
Commenting on the results, CEO Bob Etchingham said that Applegreen's performance was "underpinned by positive like for like growth, particularly in the Republic of Ireland, ongoing expansion of our estate and an enhanced fuel margin resulting from our acquisition of a 50% stake in the Joint Fuels Terminal in Dublin Port. The business saw significant expansion during the year as we increased our estate by 99 sites to a total of 342 locations. We opened 22 new sites in the Republic of Ireland, 20 in the UK and 57 in the US in 2017. We are confident in the prospects for the company in 2018 as our underlying business continues to perform well and we further evolve our growth strategy."
Applegreen offers a distinctive convenience retail offering in the forecourt space with three key elements - a 'low fuel prices always price promise' to drive footfall to the stores, a 'better value always' tailored retail offer, and a strong food and beverage focus, aiming to offer premium products and service to the customer. The retailer has a number of strategic partnerships with international brands, including Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix, Freshii and 7-Eleven business also has its own food offer through the Bakewell cafe brand.
© 2018 - Checkout Magazine by Maev Martin