Newly filed accounts reveal that revenues declined by 27%, dropping from €1.72 billion to €1.25 billion in the 12 months ending April 2024. The company, which focuses on marketing and distributing fuels and petroleum products, operates separately from Circle K’s retail arm.

The drop in profits follows €12.7 million recorded in the prior year.

Directors attributed the decline to lower commodity market prices, which reduced selling prices for fuel and petroleum products. This resulted in a proportional 27% decrease in the company’s cost of sales, which fell from €1.66 billion to €1.2 billion. Gross profit also dropped by 28%, from €55.77 million to €39.8 million, though gross margin percentages remained stable.

A transfer pricing policy, designed to ensure intercompany sales of petroleum products are conducted at arm’s length, influenced the company’s financial performance. Operating profit fell by 28%, from €15.34 million to €10.95 million, while higher net finance expenses of €3.98 million further reduced pre-tax profits. After accounting for a €1.3 million corporation tax charge, the company recorded a post-tax profit of €5.58 million.

Despite these challenges, the directors expressed confidence in the company’s future, citing plans for organic growth. The workforce decreased slightly, from 150 to 147 employees, while staff costs rose marginally from €8.92 million to €8.96 million. This included €283,000 in redundancy payments, up from €163,000 in the previous year.

Directors’ pay increased significantly, rising from €1.29 million to €1.92 million, while non-cash depreciation costs totaled €6.5 million.

At the end of April 2024, the company reported shareholder funds of €77.17 million, including €4.2 million in cash reserves. Last year, Circle K sought to expand its operations with the acquisition of nine forecourts and convenience stores from Pelco, a retail group operated by Paul and Lynda Fitzgerald. Pelco recorded revenues of €59 million and pre-tax profits of €1.43 million in 2023.

The proposed acquisition is currently under investigation by the Competition and Consumer Protection Commission (CCPC). If approved, the deal would increase Circle K’s presence in Ireland to 419 locations and expand its store network from 168 to 177. Circle K’s ultimate parent company is Canada-based Alimentation Couche-Tard Inc.