Wrap Text
2019 Full Year Results - Short Form Announcement
Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56
ISIN: GB00BDGT2M75
This short form announcement is the responsibility of the Directors and represents only a summary of the information contained in
the full announcement. Consequently, it does not contain full or complete details. Any investment decisions made by investors and/or
shareholders should be based on consideration of the full announcement as a whole and investors and/or shareholders are encouraged
to review the full announcement.
The full announcement is accessible on the Company’s website at https://investors.vivoenergy.com/results-centre and on the JSE website
at https://senspdf.jse.co.za/documents/2020/jse/isse/VVOE/VVOresults.pdf.
Copies of the full announcement may be requested by contacting Investor Relations at investors@vivoenergy.com.
Vivo Energy plc
(LSE: VVO & JSE: VVO)
4 March 2020
2019 Full Year Results
Vivo Energy plc, the pan-African retailer and distributor of Shell and Engen-branded fuels and lubricants with a growing non-
fuel offering, today announces its consolidated financial results for the twelve-months ended 31 December 2019.
Christian Chammas, CEO of Vivo Energy plc, commented:
“We have delivered another strong set of results in 2019, with adjusted EBITDA rising 8% to $431 million, as we built the
platform for future growth. In line with our objectives, volumes rose 11%, driven by the smooth integration of the new
Engen-branded markets, which together with gross cash unit margins of $71 per thousand litres led to record gross cash
profit of $743 million. These results demonstrate the strength and resilience of our business model and our disciplined
approach as we delivered strong adjusted free cash flow in the year, and have recommended a final dividend of 2.7 cents
per share. We have built momentum into 2020 and are excited about the 12 months ahead, as we look forward to delivering
another year of strong growth.”
KEY PERFORMANCE INDICATORS
Twelve-month Twelve-month
period ended period ended
($ in millions), if not otherwise indicated 31 Dec 2019 31 Dec 2018 Change
Volumes (million litres) 10,417 9,351 +11%
Revenues 8,302 7,549 +10%
Gross Profit 675 625 +8%
Gross Cash Unit Margin ($/’000 litres) 71 73 -3%
Gross Cash Profit 743 680 +9%
EBITDA 416 366 +14%
Adjusted EBITDA 431 400 +8%
Net Income 150 146 +3%
Diluted EPS (US cents) 11 11 -
Adjusted Net Income 162 178 -9%
Adjusted Diluted EPS (US cents) 12 14 -14%
Financial Highlights
- Sales volume increased 11%, mainly due to the contribution of the Engen-branded markets; with Shell-branded
volumes increasing by 1%
- Gross profit increased 8% to $675 million
- Gross cash unit margin of $71/’000 litres (Shell-branded: $71), ahead of expectations but lower than 2018
- Adjusted EBITDA up 8% to $431 million, with EBITDA up 14% at $416 million
- Adjusted diluted EPS of 12 cents was impacted by higher net finance expenses and increased effective tax rate
- Diluted headline EPS of 11 cents, in line with 2018
- Recommended final dividend of 2.7 cents per share (2018: 1.3 cents), bringing the full year dividend to 3.8 cents,
15% higher than pro-forma full year 2018
Strategic and Operational Highlights
- Good HSSE performance, with Total Recordable Case Frequency of zero in our Shell-branded markets and 0.04
across the Group
- Further expanded our Retail network by opening a net total of 96 new retail service stations
- Opened 123 new non-fuel retail offerings and expanded our joint ventures with KFC franchisees to five
countries
- Completed implementation of SAP S/4HANA across all of the Shell-branded markets which provides a platform
for increased efficiencies and digital opportunities
- Successful integration of the Engen acquisition, with the 8 new markets delivering strong performance
Engen
Vivo Energy completed the transaction with Engen Holdings (Pty) Limited on 1 March 2019. The integration has gone
smoothly and the new businesses are performing well under the Vivo Energy operational model and performance driven
culture.
We believe there is an opportunity to significantly increase the retail network across the new markets. This growth,
together with the upgrading of the existing network and the expansion of the non-fuel retail offering is expected to lead to
significant growth in volumes and market share. During 2019, we launched our Shining Sites project with the aim of making
the service stations more welcoming for our customers, with 83 sites refurbished by the end of the year. A net total of 15
new Engen-branded service stations were also opened during the year in the Engen-branded markets, excluding the 14
Engen-branded sites in Kenya that were re-branded to Shell in line with our plans.
We also believe there is a major opportunity to drive Commercial volumes in the markets through the expansion of value
adding offerings to mining customers and a more strategic approach to large industrial customers. We have already won a
significant supply contract in the Commercial sector, which has driven growth and will generate further benefits over the
next six months.
The good progress we have made is demonstrated by the ten-months of contribution to the Group's full-year results from
the new Engen-branded markets, with volumes for the period of 987 million litres, gross cash profit of $75 million, adjusted
EBITDA of $42 million and net income of $12 million.
Morocco Conseil de la Concurrence
In 2019, Vivo Energy announced that the Moroccan Conseil de la Concurrence were undertaking a review of the
competitive dynamics of the fuel industry in Morocco. This review remains ongoing, and we will provide further updates as
appropriate.
Outlook
The Group has entered 2020 with good momentum and we look forward to another year of strong performance. We
expect to deliver mid-single digit gross cash profit percentage growth in 2020, driven by improved volume growth in the
Shell-branded markets, organic growth in the Engen-branded markets and two months of additional Engen contribution in
the first quarter due to the timing of the Engen transaction in 2019, together with broadly stable gross cash unit margins.
Capital expenditure is expected to be slightly ahead of 2019 levels, at between $150-160 million as we invest in growing
and upgrading the retail network across all 23 countries, with 80-100 net new sites targeted for the year. Following the
successful integration of Engen, Vivo Energy has a stronger platform for growth and we are excited by the prospects ahead
of us in 2020.
Results presentation
Vivo Energy plc will host a presentation for analysts and investors today, 4 March 2020 at 09.00 GMT, which can be
accessed at: https://webcasting.brrmedia.co.uk/broadcast/5e383d55b9710760e29258ff
Participants may also dial in to the event by conference call:
Dial-in: +44 330 336 9125 / +27 11 844 6054
Participant access code: 3909998
The replay of the webcast will be available after the event at https://investors.vivoenergy.com
Media contacts: Investor contact:
Vivo Energy plc Vivo Energy plc
Rob Foyle, Head of Communications Giles Blackham, Head of Investor Relations
+44 7715 036 407 +44 20 3034 3735
rob.foyle@vivoenergy.com giles.blackham@vivoenergy.com
Tulchan Communications LLP
Martin Robinson, Suniti Chauhan, Harry Cameron
+44 20 7353 4200
vivoenergy@tulchangroup.com
Notes to editors:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has
a network of over 2,200 service stations in 23 countries operating under the Shell and Engen brands and exports lubricants
to a number of other African countries. Its retail offering includes fuels, lubricants, card services, shops, restaurants and
other non-fuel services. It provides fuels, lubricants and liquefied petroleum gas (LPG) to business customers across a range
of sectors including marine, mining, construction, power, transport, wholesalers and manufacturing. The Company employs
around 2,600 people and has access to over 1,000,000 cubic metres of fuel storage capacity and has a joint venture, Shell
and Vivo Lubricants B.V., that sources, blends, packages and supplies Shell-branded lubricants.
For more information about Vivo Energy please visit www.vivoenergy.com
Forward looking-statements
This report includes forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties,
many of which are beyond the Company’s control and all of which are based on the Directors’ current beliefs and expectations about
future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as “believe”,
“expects”, “may”, “will”, “could”, “should”, “shall”, “risk”, “intends”, “estimates”, “aims”, “plans”, “predicts”, “continues”, “assumes”,
“positioned”, “anticipates” or “targets” or the negative thereof, other variations thereon or comparable terminology. These forward-
looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and
include statements regarding the intentions, beliefs or current expectations of the Directors or the Group concerning, among other
things, the future results of operations, financial condition, prospects, growth, strategies of the Group and the industry in which it
operates. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result
of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future
results indicated, expressed, or implied in such forward-looking statements. Such forward-looking statements contained in this report
speak only as of the date of this report. The Company and the Directors expressly disclaim any obligation or undertaking to update
these forward-looking statements contained in the document to reflect any change in their expectations or any change in events,
conditions, or circumstances on which such statements are based unless required to do so by applicable law.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Date: 04-03-2020 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
