Australia's Viva Energy tanks 25% on weak results, forecast (updated)

Viva Energy

25/02/2025 04:48

(Adds details on stock move, results and CEO, analyst comments
from paragraphs 2 onwards)
    By Nikita Maria Jino
       Feb 25 (Reuters) - Shares of Viva Energy Group  VEA.AX 
tanked 25% on Tuesday, set for their worst day ever, as the
Australian fuel retailer missed full-year profit expectations
and signalled challenging trading conditions would weigh on
first-half results.
    The drop in the stock, which listed on July 2018, sent its
price to a near four-year low and wiped out nearly A$1 billion
($635 million) of the firm's market capitalisation, which now
stands at A$2.86 billion.
    Viva Energy's underlying profit dropped 20% to A$254.2
million in 2024, missing a consensus estimate of A$260.6 million
provided by Visible Alpha.
    "Group performance was negatively impacted by lower demand
within our convenience business due to cost-of-living pressures
and illicit tobacco trade, coupled with high inflation lifting
the cost of doing business," CEO Scott Wyatt said.
    The company forecast combined earnings before interest,
taxes, depreciation and amortization (EBITDA) from its
convenience and commercial segments, which together account for
over 90% of total EBITDA, of A$270 million to A$330 million for
the first half of fiscal 2025.
    That too is below analysts estimate of A$380 million, as per
Visible Alpha.
    Analysts at Jefferies said the results were "another
disappointment, with material consensus estimate downgrades
implied by commentary."
    Viva's stock was last down 25.2% at A$1.79 and was the
second-largest loser on the benchmark ASX 200 index  .AXJO ,
which was down 0.6% as of 0441 GMT.
 
 ($1 = 1.5743 Australian dollars)
 

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Savio
D'Souza)
 ((Nikita.Jino@thomsonreuters.com;))