Applegreen's H1 revenues increase with no significant effect from Brexit vote

6th Sep 2016 10:46

(ShareCast News) - Irish petrol retailer Applegreen's half year revenues increased as it said it was not significantly impacted by the Brexit vote, but it could be affected by the euro/sterling exchange rate in the future.For the six months ended 30 June, revenue increased 7.4% to €556m and profit rose 20.4% to €68.5m compared to the same period last year.Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 15% to €13m, or a 24.2% rise before foreign exchange gains and losses.Chief executive Bob Etchingham, said: "The decision by the UK public to exit the EU took place in late June so had no significant impact on the figures for the six months. Looking to the future, the lower sterling/euro exchange rate will obviously impact on our consolidated figures but otherwise it is too early to assess what impact the decision will have on our business."Like-for-like growth in gross profit at constant currency was 5.5%, mainly driven by a 13.4% increase in like-for-like food sales at constant currency. As of 30 June net debt was €24m.Revenue in Ireland increased by 12.7% and gross profit increased by 20.3%. Like-for-like food and store sales and gross margin both increased by 8.5%. Fuel gross profit increased by 20.5% year-on-year.It expanded its Irish estate with 12 new outlets. Four new company owned sites were added, one service area in Trim and three petrol stations, while one site was divested. The Birr petrol station was upgraded to a service area. Nine dealer sites were also added bringing the total portfolio to 42 by June.In the UK, revenue remained flat during the first half of the year compared to 2015 due to low fuel prices and weak sterling while gross profit increased to €18.4m from €15.6m.Like-for-like fuel gross profit fell by 1.1% due to an increased competitive environment in the early part of the year.Two new service areas were opened in Northern Ireland. The company said there is also a number of service areas that are in various stages of the planning process. Five new petrol filling stations were opened in the UK with a further four existing stations being rebranded.Applegreen holds a 15% share of the Irish motor fuel market and has strategic partnerships with Burger King, Subway, Costa Coffee, Greggs, Lavazza, Chopstix and Freshii.Etchingham added: "Growth was particularly strong in the Republic of Ireland where our service areas and recent upgrades are well positioned to capture the demand from positive consumer sentiment. In the UK, a more competitive environment impacted growth in the early part of the year and while this abated, we also noted a more cautious consumer in advance of the Brexit vote.""Trading since the end of June has been positive and has shown improvement particularly in the UK. Apart from the impact of the weaker sterling on the translation of our earnings, we expect our full year performance to be in line with expectations."Shares in Applegreen were down 0.65% to 385p at 1127 BST.