ADNOC Distribution, the UAE’s largest fuel and convenience retailer, has released strong financial results for Q1 2018.
Gross profit for the period increased 14.3% compared to the same period last year to $320mn and net profit was $147.6mn, up by 12.1% compared to the same period in 2017.
ADNOC Distribution's acting CEO, Saeed Mubarak Al Rashdi, said: “ADNOC Distribution’s first quarter results illustrate a company that is financially strong and has laid a solid foundation for further growth, with its fuel, non-fuel and cost efficiency initiatives. A strong and profitable ADNOC Distribution is good for shareholders, but it’s also good for customers and the UAE as it allows the company to continue investing in critical infrastructure, technology and human capital that supports the country’s development.”
The company’s operational performance remained solid, with total fuel volumes sold reaching 2.3bn litres in the first quarter, up 0.9% from the same period last year. In its non-fuel retail business, gross profit increased by 37.1%, while average basket size, which measures the average amount each customer spent in the company’s convenience stores, rose by 12.5%.
ADNOC Distribution's deputy CEO, John Carey, commented: “Our financial performance in the first quarter was strong, despite some market-wide headwinds, with increases in EBITDA and net profit. This provides us with a solid foundation to continue transforming our business and delivering against our growth strategy.
“As a management team, we will continue focusing on enhancing our customers’ experience across all parts of our business. By providing more choice to our fuel customers through ADNOC Flex, by further improving our convenience store offering, partly through agreements with famous brands like Géant, and by being more cost efficient, I am confident that we will continue to see profitable growth.
“ADNOC Distribution has a market-leading position in the UAE and our first quarter results reinforce the financial robustness of our company and agility of our business model. I thank our shareholders for their continued trust and I look forward to further positive developments.”