Viva Energy has provided an operating update and unaudited financial results for the six months ended 30 June 2024 (1H2024).
Group fuel sales were up 5.7% over the same period last year, attributed to strong growth in the commercial and industrial business, offsetting sector-wide “softness” in the retail market. Unaudited Group EBITDA is expected to be between $445 million and $455 million.
Within the company-operated fuel and convenience network (Express and OTR combined), same-store fuel and convenience sales each declined by around 5%. Viva Energy says high oil prices, cost of living pressures and the illicit tobacco trade impacted demand, with same-store tobacco sales down around 17%.
With the inclusion of OTR, gross margin on convenience sales lifted to 38% in the quarter ended 30 June 2024.
Both Express and OTR have been affected by the soft environment, says Viva Energy, with 1H2024 convenience and mobility EBITDA expected to be broadly in line with the 1H2023 reported result.
The company says “good progress” is being made to integrate OTR, Express and Viva Energy Retail and begin capturing synergies and efficiencies, which are expected to drive significant earnings improvements over the next 18 months.
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