Applegreen, the Irish fuel and forecourt retail group, saw pretax losses widen to €92.3 million in 2024 on the back of rising finance costs on loans taken to fuel ambitious expansion plans.
Despite revenue growth in Ireland and the UK, overall turnover fell on the back of a significant decline of income from its US operations where it sold part of its business.
Stripping out depreciation and finance costs, Applegreen said adjusted Ebitda (earnings before interest, tax, depreciation and amortisation), which it says is the “primary performance metric of the group”, came in at €296.9 million, up from €286.1 million in 2023.
The roadside hospitality group says it has invested almost €300 million into the business this year, as part of a €1 billion expansion plan over the next five years.
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“We’re investing for the long-term at home in Ireland and in our overseas markets in Britain and in the United States,” said Applegreen co-founder and chief executive, Joe Barrett.
“Our plans to invest €1 billion in the business are well on track and we are very excited about our future prospects.”
Accounts filed with the Companies Registration Office for Causeway Consortium, the holding company behind Applegreen which has now 435 sites across Ireland, the UK and the United States, note the business expects profitability to improve going forward as it reported revenue of €3.85 billion for last year, down €50 million.
The group sold a number of filling stations earlier this year and is shifting its focus towards motorway service areas, which offer greater retail, food and beverage opportunities.
“As we continue to redevelop our sites, particularly in the US, and grow organically, we expect this profit to increase in the coming years,” Mr Barrett said, as gross profits widened last year to €1.04 billion from €972 million.
Applegreen was founded in 1992 with one station in Ballyfermot, west Dublin. Having floated on the Irish stock market in 2015, it was taken private again six years later by Blackstone in a €718 million deal, which enabled founders Bob Etchingham and Mr Barrett to retain a combined 42.5 per cent stake in the group.
The group also raised €175 million in 2021 following the takeover by issuing payment-in-kind notes to its majority shareholder, Blackstone Infrastructure Partners, which carry an initial interest rate of 9 per cent.
The company’s biggest market is the UK, which accounts for more than half of its overall revenue, some €2.04 billion, saw sales rise by nearly €24 million in 2024. Following the end of the financial year, Applegreen sold its UK filling station business to rival EG On The Move for €187 million.
Its Irish operations saw moderate growth with revenue advancing by just over €37 million to €1.1 billion, which was credited to Applegreen’s partnership with Marks & Spencer and a strong performance in its food sales.
Falling sales in the US, down €111.4 million to €712.3 million, saw overall group revenues fall but directors said the US market performed “in line with expectation” amid the sale of a number of locations in Florida and the midwest.
Staff costs at the group amounted to €487.1 million, up €63 million as Applegreen took on another 500 employees. The group now employs 17,429 people.
Applegreen has almost 200 locations in the Irish market. The company typically invests more than €30 million a year in the Irish market on store openings, upgrades and improvement.
