This article is from the Australian Property Journal archive
VIVA Energy posted a 65% uplift in first-half profit of its convenience and mobility segment, as it integrated the Coles Express business and prepared to complete its acquisition of OTR.
The fuel and convenience retailer recorded a 51% overall drop in net profit after tax to $174.1 million, and a 41% decrease in EBITDA to $361.9 million, largely due to sizable year-on-year falls in the energy and infrastructure division.
Convenience and mobility profit was $68.2 million, and EBITDA increased 40% to $123.7 million on the back of 11% sales growth.
“We have now completed the transition of Coles Express and are working towards completing the acquisition of OTR Group by the end of this year. Together these acquisitions will see us become one of the leading convenience retailers in the country,” said Viva Energy CEO and managing director, Scott Wyatt.
The integration of Coles Express, following a $300 million deal with Coles Group, has seen about 6,000 Coles Express team members joining the company.
Convenience sales were $549 million in the first half, a 0.9% decline versus the prior year. Excluding tobacco, sales grew 8.7% with strong growth from food-to-go, snacks and beverage categories.
The $1.15 billion OTR acquisition announced in April is expected to be completed in the second half of 2023, subject to regulatory approval, contributing to an earnings uplift from 2024.
Weekly fuel volumes achieved was 58 million litres, up 3% on the prior year, with further growth coming from the extension of the Liberty Convenience networks, not at 95 stores nationwide.
