Viva Energy Group (VEA) H2 2024 earnings summary

Executive summary

• Achieved strong sales and earnings growth in FY2024 despite challenging retail trading and cost-of-living pressures, supported by strategic acquisitions and integration progress, including full acquisition of Liberty Convenience and OTR.

• OTR acquisition completed, with integration of retail platforms and Express store conversions underway, targeting over AUD 90 million in annualised synergies and cost reductions by end 2026.

• Entered new markets such as marine fuels in Brisbane and bulk lubricants in Pilbara, and launched initiatives in hydrogen and low-carbon fuels.

Financial highlights

• Group EBITDA (RC) rose 5% year-over-year to AUD 749 million; EBIT (RC) declined 1.8% to AUD 508 million; NPAT (RC) fell 20.1% to AUD 254 million.

• Group sales rose 4% to 16.8 billion liters, with commercial up over 5% and convenience sales down 4% due to lower tobacco sales; convenience margin reached 38.8%.

• Net capex was AUD 491 million, reflecting significant investment in acquisitions and integration.

• Net debt increased to AUD 1.8 billion as of 31 Dec 2024, mainly due to OTR acquisition financing.

• Total dividends of 10.6 cps (66% of NPAT), fully franked, with Dividend Reinvestment Plan activated.

Outlook and guidance

• C&M and C&I combined EBITDA guidance for H1 2025: AUD 270–330 million, down 8–25% from FY24, with significant uplift expected in H2 as integration and cost-out initiatives materialise.

• Targeting AUD 50 million in cost reductions and margin improvements in FY25, weighted to H2.

• Liberty Convenience to contribute AUD 15–25 million EBITDA in H2 2025.

• Refining outlook constructive, with Ultra-Low Sulphur Gasoline upgrade expected to add $1.50/bbl benefit from 2026; major RCCU turnaround planned for Q3 2025.

• Capex to remain elevated in FY2025 (~AUD 500 million), then reduce as refinery investment program concludes.