Viva Energy shares plunge on profit fall
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More news: Viva Energy shares plunged after it posted a full-year profit fall of 20%.
Shares fell 23.54% to $1.83 in early trading and have plummeted 45.2% over the past 12 months
The company attributed the decline to lower demand in its convenience business, citing cost-of-living pressures and the impact of illicit tobacco trade.
Viva Energy records 20% fall in FY profit due to softer demand
The news: Fuel distributor Viva Energy reported a 20% decline in full-year net profit to $254.2 million, as the group suffered from lower demand within its convenience business due to cost-of-living pressures and illicit tobacco trade.
The numbers: The company declared a full-year dividend of 10.6 cents per share, down 32% from last year's payout of 15.6 cents per share.
Group fuel sales rose 3.7% year on year to 16.8 billion litres, supported by sales growth in Viva's commercial business and higher crude intake. However, fuel sales only edged up 0.5% at its convenience and mobility (C&M) division, impacted by lower demand and high inflation lifting the cost of doing business.
Viva said that illicit tobacco trade has impacted its Smokemart & GiftBox stores and disproportionately affected its OTR branded network, having increasingly entered the South Australian market throughout 2024.
Regional refining margins also declined in the second half of the year, the company said, triggering federal government support in the third quarter.
The context: Viva said that while "trading conditions remain challenging" for its C&M business, it expects synergies, overhead cost reductions and a lower inflation environment to drive earnings growth in the second half of the year, with store conversations increasingly driving growth in 2026.
Viva's CEO and managing director Scott Wyatt noted that its commercial and industrial business continues to perform well, and regional refining margins are beginning to find some strength amidst a volatile geopolitical backdrop.
The source: ASX announcement
