21st Oct 2021 09:42
(Alliance News) - London-based Vivo Energy PLC on Thursday said it has delivered another strong quarter with the business maintaining its momentum.
The pan-African retailer of Shell and Engen-branded fuels and lubricants said its volumes rose 3% in the three months to September 30 year-on-year to 2.58 billion litres, as mobility restrictions eased in the latter part of the quarter.
Retail volumes were up 6%, supported by increasing mobility and excellent site roll-out progress, while commercial volumes were down 1%, primarily due to the end of the material supply contact in 2020. Lubricants delivered 9% volume growth driven by strong performance in both the retail & business-to-consumer channels, Vivo highlighted.
Gross cash profit for the quarter totalled USD195 million, 4.3% higher than the prior year's USD187 million, primarily driven by higher volumes and unit margins.
Vivo noted that it has opened 114 net new sites in the first nine months of the year, ahead of our previous full year guidance range of 90 to 110 net new sites. The company said it now expects to open between 130 to 140 net new sites in 2021 - exceeding the top of its previous guidance range by more than 20% - and aims to maintain this pace of site openings in 2022.
"We believe there is significant long-term potential in our markets and will continue to invest to grow our fuel and non‑fuel offerings to meet this demand whilst broadening our product mix to provide long-term benefits to our customers and our broader stakeholders," said Chief Executive Christian Chammas.
Vivo Energy shares were trading 1.8% higher in London on Thursday morning at 104.80 pence each. In Johannesburg, the stock was flat at ZAR20.26 a share.
By Evelina Grecenko; [email protected]
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