Last year, the energy trader and convenience store network Virši (Virši-A AS and its affiliated Group companies) continued its targeted growth, closing the year with a consolidated audited profit of EUR 5.1 million. EBITDA, or the Company's profitability metric, reached EUR 13.7 million, the highest in the Company's history and up 11.7% year-on-year.
"In a challenging geopolitical and economic environment, the Company continued to grow last year, implementing major projects in both network expansion and modernisation, as well as sustainability-related projects, together with continuing to increase market share in the fuel, commodity trading and energy segments. The total amount of investments made last year reached EUR 17.5 million, which is a significant contribution to the Company's successful development in the future," says Janis Viba, Chairman of the Management Board and CEO of Virši.
Expansion of the energy segment
In expanding and diversifying electricity solutions available to inhabitants, last September Virši introduced its electricity offer for households. It is based on competitive prices, flexible cooperation conditions and special offers for the purchase of fuel and goods from the Virši network.
"The electricity trading segment delivered a strong performance, with a gross profit of EUR 2.4 million in 2023, almost 6 times the 2022 figure for this business segment. As an energy company, we want to offer our customers the widest possible range of products and services. This is why our plans also include the introduction of a natural gas offering for customers, which we plan to launch during 2025 after the necessary IT infrastructure for trading this product is in place," says Janis Viba.
Geographical expansion
During the year, Virši opened 3 new service stations in Preili, Kraslava and near Olaine. Last year, the Company also carried out major modernisation works at 2 sites in Riga, located in the suburb of Sarkandaugava and also Satekles street in the centre, as well as at a facility in Zilani. In the second half of last year, construction started on 3 new service stations in Riga (Viskalu iela), as well as the towns of Sigulda and Salaspils. The Company's strategic goal is to have at least 90 service stations up and running by the end of 2026, therefore expanding the network will be one of the Company's top priorities this year. It is also planned to move beyond the Latvian market this year by launching operations in Lithuania and opening its first station in the south of the country on the A5 motorway near the town of Marijampole in spring.
In addition to the opening of new service stations, the past year also marked the establishment of new business models and sales channels - selling the popular Virši products outside the traditional service station environment. In order to be closer to its customers and offer their favourite coffee and other daily necessities, in the summer the Company introduced the first barista robot in the Baltic states at the shopping centre Spice, as well as started selling Virši coffee in the top! chain of stores, while in the autumn a Virši store with a carefully selected assortment of food and beverages opened its doors in the centre of Riga, on Terbatas iela.
Growing market share
The expansion of the network and the opening of new outlets are naturally reflected in the increase in sales of goods and fuel, despite the challenging market conditions. In 2023, retail sales of fuel in Latvia increased by 1.0% in terms of tonnes of fuel sold, while Virši's business grew by 9.5%. Turnover in convenience stores increased by 22.7% or EUR 8.9 million, as a result of which the Company continued to increase its market share in these business segments.
The Virši mobile app was developed to ensure customer convenience and to improve their experience at service stations. It helps drivers save time and pay for their fuel at the pump, includes all the benefits of business, personal and shareholder loyalty programmes, and provides special offers for app users. In less than half a year, the number of customers who have downloaded the app has reached almost 55 000.
For a better future
Promoting energy efficiency and increasing the share of renewable energies in its portfolio, by the end of 2023, almost half of Virši's service stations were equipped with solar panels. In 2022, the Group succeeded in attracting support from the European Union's Alternative Fuels Infrastructure Facility for the development of a power charging station network. During 2023, the Virši network was actively developing high-capacity EV charging points, and by the end of the reporting year, Virši brand EV charging was already available at 14 Virši locations, significantly expanding the EV charging options and thus increasing both the availability of this sustainable form of transport energy and people's interest in purchasing greener vehicles. By the end of 2024, more than 20 Virši sites are expected to offer EV charging under the Virši brand.
Valuing its employees and caring for their well-being in the current high inflationary environment, the Company has twice revised and increased the pay rates of its service station employees, thus providing them with one of the most competitive offers in the Latvian retail market.
The full audited consolidated financial statements of the Virši Group for 2023 are also available on the Company's website.
The shares of AS VIRŠI-A are admitted to trading on Nasdaq Baltic First North Market.
The certified adviser for AS VIRŠI-A is the Law Office Eversheds Sutherland Bitans.
Virši is a rapidly growing local energy trader and convenience store network with 29 years of experience. Currently, Virši has 77 sales points, 74 of which are service stations, and employs more than 800 people across Latvia. Since 11 November 2021, the shares of AS VIRŠI-A have been listed on the Nasdaq Riga First North Alternative Market.
Contact details:
AS VIRŠI-A
Undine Priekule
E-mail: undine.priekule@virsi.lv
Telephone: +371 26141219
Certified adviser:
ZAB Eversheds Sutherland Bitans SIA
Justine Ignatavicute
E-mail: justine.ignatavicute@eversheds-sutherland.lv
Telephone: +371 28665066
