Applegreen PLC – Half-year Report

Applegreen PLC – Half-year Report

Dublin, London, 20 September 2019:   Applegreen plc (‘Applegreen’ or ‘the Group’), a major roadside retailer with Service Areas and Petrol Filling Station operations in the Republic of Ireland, the United Kingdom and the United States announces its unaudited interim results for the six months ended 30 June 2019.

Financial highlights:

·    Group revenue increased by 73% on H1 2018 to €1.5bn (70% on a constant currency basis)


·    Group gross profit increased by 145% on H1 2018 to €268.0m (142% on a constant currency basis)


·    Group adjusted EBITDA (pre IFRS 16) increased by 204% to €58.9m in H1 2019 from €19.4m in H1 2018 (201% on a constant currency basis).  Adjusted EBITDA (post IFRS 16) was €92.8m


·    Applegreen’s adjusted EBITDA, excluding Welcome Break, (pre IFRS 16) increased by 37% to €26.5m in H1 2019 aided by very strong LFL growth


·    Like for like growth in fuel revenue of 8.4% and fuel gross profit 14.3% (constant currency)


·    Like for like growth in non-fuel (food and store) revenue of 5.0% and non-fuel gross profit of 6.0% (constant currency)

·    Continued investment in the network with capex for the period of €33.5m

·    Interim dividend of 0.66 cent per share (H1 2018: 0.63 cent per share)


Operational highlights:

·    The integration of Welcome Break, which was acquired in October 2018, is going well and significant additional recurring synergies have been identified, which will be delivered in full by end 2021

·    Further expansion continues with US focus:

Acquisition of 46 sites in the US Mid West announced on 26 June

Acquisition of minority stake in Connecticut Service Plazas announced on 7 August

11 sites added to the estate in H1 in ROI and UK

·    The Group now has 483 sites at 30 June 2019 (30 June 2018: 368 sites)

Key figures (€m):








Gross Profit




Adjusted EBITDA (pre IFRS 16)*




Adjusted Profit before Tax**




Adjusted Diluted EPS*** (€ cent)




*EBITDA adjusted for share based payments, non-recurring operating charges and acquisition related adjustments and excluding IFRS 16 (see glossary)

** Profit before tax adjusted for share based payments, non-recurring operating charges, IFRS 16, interest on shareholder loans, non-recurring interest charges and acquisition related adjustments (see glossary)

*** Diluted EPS adjusted for share based payments, non-recurring operating charges, IFRS 16, interest on shareholder loans, non-recurring interest charges, acquisition related adjustments and the related minority interest and tax impact on these items (see glossary)

Commenting on the results, Bob Etchingham, CEO said:

“We are very pleased with our trading performance during the first half year especially from our core Applegreen business. Further initiatives were taken to further develop the business, including recently announced acquisitions in the US.”

“Like for like revenue and profits from the underlying Applegreen estate, excluding Welcome Break, continued to show strong growth, whilst significant progress was made on the integration of the Welcome Break business acquired in the UK in Q4 last year. The delivery of anticipated synergy benefits is firmly on track and we see the opportunity for greater savings than originally expected going forward.”

“We recently announced two significant acquisitions in the US. A portfolio acquisition of 46 sites located in Minnesota, Wisconsin and Michigan further expands Applegreen’s footprint to this region, whilst our interest in a consortium acquisition of the Connecticut Service Plazas concession represents a significant strategic step in growing our presence in the US and establishing Applegreen as a recognised operator of larger Service Area sites on strategic road networks.”

“The Welcome Break business has seen growth in core catering but trading was soft during Q1 in peripheral revenue streams. Traffic volumes and turn-ins continued to grow but a slight fall in conversion rates reflects weakened consumer confidence. Post period end, the key summer period demonstrated the resilience of Welcome Break, trading satisfactorily despite the uncertain political and macro-economic conditions.”

“Our primary focus in the immediate term remains the delivery of further synergy benefits from Welcome Break, which we now expect to be significantly larger than our previous expectation, and the integration of recent US acquisitions, whilst continuing on the deleveraging trajectory for the Group.”

No Comments

Post a Comment