The Convenience Shop (Holding) p.l.c. announces strong interim financial results

The Convenience Shop (Holding) p.l.c., Malta's leading convenience retailer, has reported its interim financial results for the period between 1 January 2023 and 30 June 2023, showcasing a robust performance that reflects the Group's dedication to growth, efficiency, and customer centricity.

The Group achieved a turnover of €22.5 million during the first half of 2023, marking a remarkable 16% increase compared to the same period in 2022. This strong growth was a result of the shop sales recovery post the Covid era, enhanced margins through supplier mix , and effective containment of overheads. Gross profit as a percentage of sales expanded by 1.4 percentage points to 14.5%, equivalent to €711K in absolute terms. Furthermore, the Group's operating profit reached €1.6 million, representing 6.9% of turnover, a notable improvement of 0.9 percentage points over the first half of the previous year. Profit before tax surged to €1.4 million, signifying a substantial 57% increase or €515K.

As of 30 June 2023, the Group's total assets stood at €36.5 million, underlining its solid financial foundation. The company upheld its commitment to meeting all obligations to suppliers and stakeholders while achieving significant progress in enhancing its liquidity ratio, which increased from 0.7 at the end of 2022 to 0.9 at the end of June 2023.

The Convenience Shop (Holding) p.l.c. remains dedicated to serving its customers and investing in its employees and systems to elevate the shopping experience and streamline internal processes. Over the upcoming months, the Group plans to maintain and augment profitability by seizing new shopper opportunities With 88 outlets currently operational, , the Group will continue expanding its franchise network by the end of 2023. Additionally, the Group is investing €1.8 million in state-of-the-art refrigeration equipment, air-conditioning, shop shelving, and machinery to further equip its outlets.

After the Annual General Meeting held on 21 July 2023, the Company disbursed a net final dividend of €1 million for the financial year 2022. For the first half of 2023, the Directors are declaring a net interim dividend of €462K (equivalent to €0.015 per share), reflecting a substantial 54% increase over the dividend declared in August 2022.

Speaking about the interim results, CEO Martin Agius said, "It is with a collective sense of satisfaction that we announce these strong interim results, reflecting the resilience and dedication of our team in navigating challenges and capitalizing on opportunities. The Group's distinct strategies, encompassing both 'Owned' and 'Franchise' businesses, have effectively driven profit growth and shareholder value."