Energy commodities trader and convenience store network Virši (AS VIRŠI-A and related group companies) has achieved a turnover of EUR 162.4 million in the first six months of 2023, which is an increase of 5% or EUR 7.7 million, compared to the same period last year, despite the drop in fuel product prices observed on the market in the first half of the year. The convincing growth dynamic was driven by the expansion and modernisation of the service station network, the diversification of the product range in grocery stores and the development of the energy segment.
By expanding and modernising the service station network, Virši invested almost EUR 6 million in the construction of a new station in Olaine, the reconstruction of three stations in Rīga (Sarkandaugava and Satekles iela) and Zīlāni, and the opening of two new Virši franchise stations in Preiļi and Krāslava, thus strengthening its market position with 72 Virši branded stations across Latvia.
The development of the retail segment contributed to a 24.5%, or EUR 4.5 million, increase in the turnover of Virši convenience stores. Retail fuel sales volumes also increased – in Latvia in the first five months of the year, sales volumes increased by 2.5% in terms of tonnes of fuel sold, and in Virši by 14.5%. The energy business segment of Virši also continued to develop this year, reaching turnover of EUR 10 million. The Company’s EBITDA thus increased by 14.5% in the first half of the year compared to the same period last year, reaching almost EUR 7.6 million.
“In the first half of 2023, Virši continued to successfully implement its development strategy, both by increasing its market shares in its key business segments and by introducing new sustainability initiatives. In the first half of the year, the Company also worked extensively on products that will be offered to customers in the near future, such as a mobile app, the development of an electricity product for households, as well as new points of sale where we will offer in-store products outside the filling station environment,” says Jānis Vība, Chairman of the Board of Virši.
By installing solar panels on the roofs of the stations, a step has been taken to produce a portion of the electricity needed for self-consumption, while the rest of the electricity is purchased from Latvian energy producers that produce electricity from renewable resources from the beginning of 2023. The Company’s portfolio currently includes 65 local producers using sun, water, biomass and biogas to generate electricity. At the same time, almost half of Virši 31 stations produce solar energy for self-consumption, providing 485 kW of power and covering a significant share – an average of 22% of the total electricity required to operate these stations. Thus, only renewable electricity produced in Latvia is used for self-consumption within the company.
In addition, further steps were taken to expand charging opportunities for electric vehicle owners – 3 charging stations were installed in the first half of 2023, providing a total of 7 charging ports, where 5 cars can be charged at the same time. In the coming months, thanks to support from the EU’s Alternative Fuels Infrastructure Facility (AFIF), the Company plans to install 11 more electric vehicle charging stations with at least 24 charging ports and equip a total of 14 Virši stations with electric vehicle charging possibilities by the end of the year.
To promote sustainable development, the Virši Sustainability Task Team was created in spring this year with the aim to study, calculate, develop and implement realistic and necessary sustainability solutions. An updated report on the implementation of the principles of environmental, social responsibility and corporate governance (ESG) will be published in September this year.
The full unaudited financial report of AS VIRŠI-A Group is available on the Company’s website.
Jānis Vība, Chairman of the Board of Virši, and Vita Čirjevska, Member of the Board, will provide more information about the financial results for the first half of 2023 at the webinar on August 11 at 10.00 EET (in Latvian) and 11.30 EET (in English).
To participate in the webinar in English, please apply in advance by registering:
https://nasdaq.zoom.us/webinar/register/WN_StY9pSKbS1CKT5pjdmdBng.
After filling in the application form, you will receive a link to the webinar and instructions to your specified email.
The shares of AS VIRŠI-A are admitted to trading on Nasdaq Baltic First North Market.
The certified adviser for AS VIRŠI-A is Law Office Eversheds Sutherland Bitāns.
Virši is a rapidly growing energy commodities trader and convenience store network with 28 years of experience. Currently there are 72 service stations in the Virši network and these employ over 760 employees across all of Latvia. On November 11, 2021, AS VIRŠI-A shares were admitted to trading on the alternative market First North of Nasdaq Riga stock exchange.
Contact details:
AS VIRŠI-A
Undīne Priekule
E-mail: undine.priekule@virsi.lv
Telephone: +371 26141219
Certified adviser:
ZAB Eversheds Sutherland Bitāns SIA
Justīne Ignatavičute
E-mail: justine.ignatavicute@eversheds-sutherland.lv
Telephone: +371 28665066
