Viva Energy’s convenience business delivered improved performance in the first half, driven by growth in retail fuel sales and customer traffic.
The convenience and mobility (C&M) segment reported adjusted EBITDA of $138.7 million for the six months ended June 30, up 86.4 per cent year on year. Management attributed the rise to higher fuel sales and margins, as well as contributions from the Liberty Convenience acquisition completed last March.
Group EBITDA increased 154 per cent to $774.4 million, falling within the company’s expected range of $770 million to $780 million. Net profit after tax on a replacement-cost basis surged 492.8 per cent to a record $371.1 million.
Fuel sales volumes grew 2 per cent, supported by fuel availability and competitive pricing across the group’s retail network, underpinning customer visits and the broader convenience proposition.
Shop margins remained flat at 37.7 per cent in the first half, mainly due to inventory write-downs associated with supply chain realignments. Underlying shop margins, meanwhile, improved from 41.2 per cent to 42.5 per cent after excluding tobacco and wastage, signalling early signs of improvement in underlying store performance.
Convenience sales, excluding tobacco, increased slightly by 1.3 per cent. Tobacco sales were down 16.8 per cent but remain stable compared to the second half of FY25.
“Viva Energy delivered its highest underlying first-half earnings with all business units reporting significant growth,” said Viva Energy Group’s CEO Scott Wyatt.
“The first half of this year was shaped by geopolitical events which have caused significant disruption across the global energy markets. These strong results reflect a substantially improved refining margin environment, as well as improving retail sales growth and continuing strength of our commercial businesses.”
Net debt declined from $2.1 billion at December 31 to $1.7 billion at June 30.
Looking ahead, Wyatt said the company enters the second half with a strong balance sheet and a clear focus on disciplined execution. The C&M segment will focus on improving store productivity and sustaining positive trading momentum, with its supply chain transformation program expected to be completed by November.
The company plans to open around 20 to 25 OTR stores while converting 10 to 15 Reddy Express outlets to a mix of OTR and Liberty Convenience networks.
