Applegreen earnings surge 26% amid expansion drive

Petrol and food retailer Applegreen said its strategy for steady but non-spectacular expansion is paying off, as it reported a 26% rise in earnings.

The steep fall in crude oil prices and the strong value of the sterling against the euro had little effect on its forecourt sales and profits.

It opened 48 outlets in Ireland, Britain, and the US last year and has plans to add the same number of forecourts to its operations this year. The company said it would seek to continue to expand in Long Island, where it has eight forecourts.

Chief executive Bob Etchingham said it was too early to say whether the new owners of Topaz — the largest petrol retailer in the Republic — would lead to increased competition but it was nonetheless confident its fuel and food offerings would pay off.

Applegreen shares, which rose over 2% yesterday to €4.60, are down from the €5.80 reached in December ahead of the global stock market rout.

With a market share of 14%, it estimates that it is the second-largest fuel retailer in the Republic, compared with the 35% share controlled by Topaz.

Topaz was sold by Denis O’Brien to Canada’s Couche-Tard late last year.

Taking account of new openings since the start of the year, Applegreen now operates 212 outlets, up from the 152 outlets it held at the end of 2014.

It said it has plenty of money to fund acquisitions as the opportunities arise and will likely acquire some 50 outlets this year.

A “positive” start to 2016 has been driven by increased consumer spending, particularly in the Republic.

Earnings before interest, taxes, depreciation, and amortisation rose 26% to €28.9m in 2015 as revenues rose 15% to €1.08bn.