Applegreen reports sharp recovery in sales following a 26.6% fall in first half

Applegreen has reported a sharp recovery in sales following the lockdown as it recorded a 26.6% reduction in sales for the first half of 2020.

Its unaudited results for the six months ended 30 June 2020 reported group revenue of €1.1bn, compared with €1.5bn for the same period last year.

In a statement it said: “The group, and Welcome Break in particular, have seen a sharp recovery and positive momentum in Q2 and into Q3, aided by government stimulus, increased traffic volumes and staycations.

”Sales volumes fell to 57% of the prior year period in April 2020 during the peak of the lockdown, improving significantly to 29% of the prior year in June 2020. After the period end, this recovery continued as remaining food offers were reopened.”

Bob Etchingham, Applegreen’s chief executive officer, commented: “The first half of 2020 has been an unprecedented period due to the Covid-19 pandemic and I am immensely proud of the tremendous efforts of our people in supporting our customers and local communities throughout this challenging period.

“Applegreen carried good momentum from last year and traded strongly for the first 10 weeks of the year, however, we saw a sudden and significant impact on the business from mid-March, particularly in our motorway service areas.

“This was most pronounced in April and May, but volumes recovered well by the end of the second quarter. To help mitigate some of this impact, the group took swift and decisive action in managing our cost base and tailoring our retail offer for changing consumer needs.

“Encouragingly, this recovery has continued over the summer months with the further lifting of restrictions, government stimulus packages and the staycation trend, all of which has improved traffic volumes. This performance further demonstrates the resilience of our business model and of our sector. We have learnt a lot during this crisis and are confident that we will emerge as a stronger organisation that is well positioned to benefit from future opportunities across all of our markets.”