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Vivo Energy plc
(Incorporated in England and Wales)
(Registration number: 11250655)
(Share code: VVO)
LEI: 213800TR7V9QN896AU56
ISIN: GB00BDGT2M75
Vivo Energy plc (the "Company")
21 October 2021
Vivo Energy plc
(LSE: VVO & JSE: VVO)
Third Quarter 2021 Trading Update
Vivo Energy plc, the leading pan-African retailer and distributor of Shell and Engen-branded fuels and
lubricants, provides the following trading update for the quarter ended 30 September 2021 ('Q3').
Q3 Highlights
' Gross cash profit of $195 million was 4% higher than Q3 20 ($187 million)
' Group volumes rose 3% from Q3 20, and by 6%, excluding the impact of the end of a large
low-margin Commercial supply contract in Q3 20
' Retail volumes were up 6%, supported by increasing mobility and excellent site roll-out progress
' Commercial volumes were down 1%, although Aviation and Marine volumes improved
' Lubricants delivered another excellent quarter, with 9% volume growth
' Unit margins remained strong at $76 per thousand litres
KEY PERFORMANCE INDICATORS
Three-month period ended 30 September
2021 2020
($ in millions), if not otherwise indicated Total Total Change
Volumes (million litres) 2,576 2,492 3%
Gross Cash Unit Margin ($/'000 litres) 76 75 1%
Gross Cash Profit 195 187 4%
Nine-month period ended 30 September
2021 2020
($ in millions), if not otherwise indicated Total Total Change
Volumes (million litres) 7,585 7,110 7%
Gross Cash Unit Margin ($/'000 litres) 76 69 10%
Gross Cash Profit 580 487 19%
Commenting on the trading update, Christian Chammas, CEO said, 'We are delighted to
deliver another strong quarter with the business maintaining its momentum. Volumes continued to
improve, and together with strong unit margins, led to gross cash profit of $195 million, ahead of both
Q3 20 and Q3 19. Performance has been driven by Retail, with our accelerated site rollout supporting
the volume recovery, despite the remaining mobility restrictions. Having delivered 114 net new sites
so far this year, we now expect to exceed the top of our previous guidance range by more than 20%,
by adding between 130-140 net new sites in 2021. Due to the opportunities in our markets, we are
aiming to maintain this new level of site openings in 2022. We believe there is significant long-term
potential in our markets and will continue to invest to grow our fuel and non-fuel offerings to meet
this demand whilst broadening our product mix to provide long-term benefits to our customers and
our broader stakeholders.'
Operational Review
The Group continued to perform well against all of its key HSSEQ indicators during the quarter,
reflecting how integral HSSEQ is to the business and its long-term success in Africa.
Group volumes of 2,576 million litres were 3% higher than Q3 20, reflecting the continuing business
recovery from the impact of COVID-19 as mobility restrictions eased in the latter part of the quarter,
partially offset by the end of a non-recurring material supply contract in Q3 20. Excluding the supply
contract, volumes were 6% higher compared to the previous year period.
' Retail delivered strong results during the quarter, with volumes up 6% compared to Q3 20,
and 3% ahead of Q3 19. This was driven by the continued network expansion and consumer
mobility increasing through the period, having initially been constrained in July by restrictions
in certain markets.
' Commercial continued to recover, with volumes 1% lower than Q3 20, and 12% behind
Q3 19, primarily due to the end of the material supply contact in 2020. Excluding the supply
contract, volumes were 6% higher than Q3 20 and 7% below Q3 19. Aviation and Marine
volumes, which have been heavily impacted by restrictions on international travel, are
beginning to recover and recorded year-on-year volume growth during the quarter.
' Lubricant volumes increased by 9% against Q3 20 and 6% against Q3 19, driven by strong
performance in both the Retail & B2C channels.
Gross cash profit of $195 million was 4% ahead of Q3 20, primarily driven by higher volumes and unit
margins. Gross cash unit margins of $76 per thousand litres were 1% higher than Q3 20. Unit margins
have remained strong, as the business has continued to benefit from the current supply and pricing
environment, the impact of H1 lubricant price increases, as well as the higher margin product mix.
COVID-19 Update
As highlighted in our H1 results, our markets started to experience higher COVID-19 case numbers
in June due mostly to the Delta variant, and this continued through much of Q3. Whilst mobility
restrictions were initially tightened, as we moved through the period and case numbers fell,
restrictions were eased, and a number of countries re-opened their borders and shortened the
duration of evening curfews. Vaccination rates have progressed at different paces, with most
sub-Saharan countries still early in their programmes. Mauritius and Morocco have the most advanced
rollout of vaccinations, with the majority of their target populations being fully vaccinated.
Outlook
The strong performance during Q3, when COVID-19 cases were elevated, demonstrates the strength
of the business model and reinforces our confidence in the ongoing volume recovery. As we move
into Q4, we are beginning to see improvements in the Aviation and Marine segment, and are driving
our Retail segment forward by accelerating the expansion of the network. Having opened 114 net new
sites in the first nine months of the year, ahead of our previous full year guidance range of 90-110 net
new sites, we now expect to open between 130-140 net new sites in 2021 and aim to maintain this
pace of site openings in 2022. Fuel will continue to be integral to the development and growth of our
African markets and we believe we are well placed to meet this growing demand, whilst broadening
our product mix to provide long-term benefits to our customers and broader stakeholders.
Conference call
Vivo Energy plc will host a webcast and conference call for analysts and investors this morning at
09:00 UK time, with the following details:
Webcast link: https://webcasting.brrmedia.co.uk/broadcast/61436a187d0383367bb11f47
Participants wishing to ask a question may also dial into the event by conference call using the below
details:
Dial-in: +44 330 336 9125 / +27 11 844 6054
Passcode: 9503021
A replay will be available after the event at https://investors.vivoenergy.com
Ends
Notes to editors:
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 / +44 7714 134 681
rob.foyle@vivoenergy.com giles.blackham@vivoenergy.com
Tulchan Communications LLP
Harry Cameron, Suniti Chauhan
+44 20 7353 4200
vivoenergy@tulchangroup.com
About Vivo Energy:
Vivo Energy operates and markets its products in countries across North, West, East and Southern Africa. The Group has
a network of over 2,400 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 2,700 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.
Vivo Energy plc has a primary listing on the London Stock Exchange, and is a member of the FTSE 250 index, with a secondary
inward listing on the Johannesburg Stock Exchange.
For more information about Vivo Energy, please visit www.vivoenergy.com
Forward-looking statements
This announcement 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, but are
not the exclusive means of identifying such statements. 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 are current only as of the date of this report. The Company and the Directors
do not intend, and will not update any forward-looking statements set forth in the document. You should interpret all subsequent written
cautionary statements in this report. As a result, you should not place undue reliance on such forward-looking statements. This
or oral forward-looking statements attributable to the Group or to persons acting on the Group's behalf as being qualified by the
announcement may contain references to Vivo Energy's website. These references are for convenience only and Vivo Energy is not
incorporating into this announcement any material posted on www.vivoenergy.com.
JSE Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Date: 21-10-2021 08:00:00
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