Forecourt retailer Applegreen has posted a 26.6% decrease in group revenue in the first half of its financial year.
In the six months to 30 June, the business posted group revenue of €1.1 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) more than halved to €25.3 million (compared to €58.9 million for the same period last year).
If the Welcome Break business is excluded, adjusted EBITDA was up 11%, it added.
Applegreen said its revenue fell by 26.6% to €1.083 billion while its gross profits were down 23.1% to €206 million.
Bob Etchingham, chief executive officer, commented: “The first half of 2020 has been an unprecedented period due to the COVID-19 pandemic and I am immensely proud of the tremendous efforts of our people in supporting our customers and local communities throughout this challenging period."
“Applegreen carried good momentum from last year and traded strongly for the first ten weeks of the year, however, we saw a sudden and significant impact on the business from mid-March, particularly in our motorway service areas," he added.
"This was most pronounced in April and May, but volumes recovered well by the end of the second quarter."
'Swift and Decisive Action'
Etchingham noted that to help mitigate some of this impact, the group took swift and decisive action in managing our cost base and tailoring its retail offer for changing consumer needs.
“Encouragingly, this recovery has continued over the summer months with the further lifting of restrictions, government stimulus packages and the staycation trend, all of which has improved traffic volumes," he said.
"This performance further demonstratesthe resilience of our business model and of our sector. We have learnt a lot during this crisis and are confident that we will emerge as a stronger organisation that is well positioned to benefit from future opportunities across all of our markets,” he added.
Looking Ahead
The Forecourt retailer said that management remain cautious around the on-going uncertainty caused by the COVID19 pandemic, the Board is confident that Applegreen is well positioned to benefit from future opportunities.
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