Applegreen Announces €1 Billion Expansion Plan Over Five Years Fuel and forecourt retailer Applegreen has unveiled a €1 billion investment strategy to expand its operations over the next five years. The company, which serves 180 million customers annually across Ireland, the UK, and the US, reported a 9% growth in gross profits last year.
Expansion in Ireland
With nearly 200 locations in Ireland, Applegreen aims to continue rolling out its Braeburn coffee offerings and its partnership with M&S Food. Currently operating M&S Food at 19 locations, the company plans to increase this to over 60 sites nationwide.
The retailer is also focusing on expanding its network of motorway and roadside service areas and enhancing EV charging infrastructure. Recent investments include:
- A €10 million service area in Clondrinagh, Limerick.
- A €3 million upgrade to the Midway Service Area in Portlaoise.
- A new motorway service area off the M3 in Dunshaughlin, Co Meath, set to open next year, featuring EV charging, a fuel forecourt, and multiple dining options.
Growth in the US
Applegreen operates over 100 motorway service areas across states like New York, New Jersey, and Ohio. Food services have become the core of its US operations, with partnerships with brands such as Starbucks, Shake Shack, and Chick-fil-A.
Having invested €1 billion in the US since acquiring its first two sites in Long Island in 2014, Applegreen is now one of the largest Irish employers in America, managing 106 travel plazas nationwide.
UK Expansion and Welcome Break Developments
In the UK, Applegreen is focusing on growing its Welcome Break brand, which includes 58 locations, such as motorway service areas and hotels. Current projects include:
- A €66 million Welcome Break service area on the M1 in Rotherham, featuring six food outlets, a WHSmith, and a Waitrose.
- New roadside services in Hickling, Nottinghamshire.
- Strong performance at a recently opened services area on the A1 in Newark, Nottinghamshire.
Financial Performance
Applegreen reported:
- A gross profit increase of 9% to €972 million in 2023.
- EBITDA growth of nearly 7% to €271 million.
- A 6% decline in turnover to €3.9 billion, attributed to falling fuel prices.
- Sales by region: €1.1 billion in Ireland, €2 billion in the UK, and €0.8 billion in the US.
Despite a pre-tax loss of €83 million, largely due to depreciation, amortisation, and €12 million in non-recurring charges, the company highlighted significant improvements in trading at refurbished sites.
Looking Ahead
Co-founder and CEO Joe Barrett praised the company’s performance and outlined its vision for continued growth:
“As we bring new sites online, enhance existing locations, and expand our EV charging network, we anticipate robust growth across all three markets – Ireland, the UK, and the US.”
Applegreen also reported an 11% rise in revenue from its food and convenience store operations, underscoring the growing importance of these segments in its overall business strategy.
Source: Media