AMPOL DELIVERS RETAIL GROWTH AMID TOUGH ECONOMIC CONDITIONS

Ampol has reported its results for the first half of 2024, with growth in convenience retail despite tough economic conditions.

Ampol’s net profit nearly tripled from $79.1 million to $235.2 million, while its net profit on an RCOP basis fell 29 per cent from $329.6 million to $233.7 million.

The company’s underlying earnings dropped 13 per cent to $502.1 million, which saw it slash its interim dividend by 37 per cent to 60 cents a share, down from 95 cents the previous year.

One of the standout segments for Ampol was convenience retail and its New Zealand business, both of which saw profit increases.

In Australia, convenience retail earnings grew 4.7 per cent to $175 million as shop gross margin continued to increase, reaching 37 per cent, through a combination of favourable product and channel mix, attachment and pricing.

Matt Halliday, CEO of Ampol, said the company delivered a resilient performance through a determined focus on the things they can control.

“In that environment, to grow Ampol’s retail earnings in Australia was a particularly pleasing result. By investing in the premium end of the market, we delivered a favourable premium fuel mix and supported our customers with targeted value promotions such as ‘Crave ’n Save’.”

Ampol’s fuel and infrastructure (F&I) operations reported a 26 per cent drop in earnings due to the decline in earnings from F&I International and Lytton, while earnings from F&I Australia were broadly in line.

“Together with a Fuels and Infrastructure Australia result that was in line with the first half last year, the strength of these performances helped to mitigate short-term impacts from disrupted production at the Lytton refinery and softer international third-party sales and margins,” said Halliday.

Production at Ampol’s Lytton refinery was down 5.8 per cent, reflecting the impact of the refinery wide steam outage and delay in supply of catalyst for the Alkylation Unit due to disruptions in the Red Sea during the first quarter.

The New Zealand segment delivered growth in RCOP EBIT to $127.6 million, up 3.9 per cent, reflecting the benefit of the diversification of its channels to market and the benefits of Ampol’s integrated supply chain.

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