Viva Energy Projects EBITDA in the Range of Millions Amid Retail Challenges

2 min read | October 21, 2024 08:40 PM EDT | By Team Kalkine Media

Google News:

Viva Energy Projects EBITDA in the Range of Millions Amid Retail Challenges — Image source: shutterstock

Recent News

Brookfield Valuation Debate Intensifies After Major Capital Moves

Canadian National Railway Valuation Question Emerges After Strong Rall...

Pan American Silver Skarn Plan Brings Growth Story Back Ahead

Bank of Montreal Banking Strategy Faces New Digital Growth Moment

Make Kalkine Media
My Trusted Source

Highlights

Viva Energy expects EBITDA between $230M-$240M.

Coles Express stores are being converted to On The Run format.

Retail conditions impact Viva Energy's earnings outlook.

Viva Energy (ASX:VEA), a leading supplier of petrol and diesel in Australia, has announced its expected earnings before interest, tax, depreciation, and amortization (EBITDA) for FY24, projecting a range between $230 million to $240 million. The company attributes this forecast to softer retail conditions, reduced tobacco sales, and rising business costs.

The company’s convenience and mobility operations, which include its service stations and related retail operations, have been impacted by changes in consumer behavior and an overall downturn in retail activity. Additionally, the rising cost of operations has contributed to this financial outlook. The lower sales of tobacco products, a significant revenue driver for convenience stores, also played a key role in these expectations.

Viva Energy has been working on a transformation plan for its retail operations, and a key part of this strategy is the conversion of its Coles Express stores to the On The Run (OTR) format. The company has confirmed that the transition is progressing as planned, with the new format expected to bring enhanced customer experiences and improved operational efficiencies. This update follows an earlier schedule released by Viva Energy in August 2024, which set the timeline for the full conversion.

As of the latest trading, Viva Energy shares were valued at $2.85 per share, reflecting the market’s response to the company’s current operational updates. The combination of external retail pressures and internal adjustments like store conversions seems to be setting the tone for Viva Energy’s financial performance moving forward.

The company’s focus remains on adapting to the changing retail environment and maintaining progress with its store transformation, which is seen as crucial to staying competitive in a challenging market.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.