The Maxol Group has announced its full-year trading figures for 2023, as CEO Brian Donaldson forecast a stronger performance for 2024.
Donaldson’s prediction comes on the back of an investment programme of some €65 million in the 2023/24 financial year.
The CEO said that, despite the challenges of the last four years – including the Covid pandemic, Brexit, and high inflation – the group finished 2023 in a strong financial position, with no net bank debt and a substantial bank surplus.
Group turnover for 2023 was €756 million, and with the cost of fuel down on the previous year, this represented a decrease of €120 million on 2022.
Profit after tax then reached €27.5 million – down again from €37.8 million in 2022, though that figure included a once-off gain from a property sale in Dublin 4.
Maxol’s €65 million investment in 2023 included the acquisition of nine new sites, the redevelopment or retrofitting of 12 stores in the Republic of Ireland and five in Northern Ireland, five further redevelopments now nearing completion, and Maxol’s first ultra-rapid EV hub in the Republic of Ireland.
Donaldson noted the expanding interests of the group in retaining customers and earning profits.
He said, “More than 40% of Maxol’s gross profit now comes from non-fuel sales, which is central to the repositioning of the company as a leading convenience retailer.
“Income from convenience retail and food, and car-washing, together with new mobility offerings, have grown significantly in importance for the group.
“Driving the repositioning of the business is a multimillion investment programme in our store network.”
Acquisition
Earlier this year, Maxol acquired seven forecourt sites in Leinster from Naas Fuels Limited trading under the Circle K brand, the convenience retail stores of which operated under the Gala brand.
Maxol has expanded to 250 service stations on the island of Ireland, 122 of which are company owned and the remaining 128 supplied under the Maxol brand and operating as independent dealer-only sites.
Donaldson commended the success of the acquisitions and added, “We remain hugely ambitious and will go into 2025 looking to acquire more sites in good locations that present strong convenience retail opportunities.”
The company has also continued its investment in ultra-rapid EV hubs, though Donaldson said that the slowdown in EV adoption could impact the speed at which the business would develop its EV-charging network.
In 2023, it launched an ultra-rapid EV hub in Newbridge, following two additions in Northern Ireland.
Value
Donaldson emphasised value, particularly in the face of competition in the convenience market, noting that customers value ease and convenience, as well as price.
He said, “Shopping behaviours are value driven, and we have seen this trend deepen this year, but not at the expense of quality or time.”
Donaldson referenced Maxol’s loyalty app and investments to improve forecourt efficiency as key to driving value and convenience for customers.
He made clear his intention to keep driving value and improving on Maxol service stations for the coming year.
This year will see highlights such as the roll-out of Maxol’s ROSA Coffee concept, the continuation of its biofuel roll-out, new Maxol lubricant products, and a high number of cars passing through Maxol car washes.
Donaldson said, “The service station of 2024 is very different to that of ten years ago, and we are creating destination stores that offer a wide range of eat-in and food-to-go options, where customers can have a meal or a coffee and access good wi-fi in comfortable surrounds.”
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