Viva Energy convenience sales decline despite fuel volume growth
Illicit tobacco trade continues to weigh on revenue as network expansion and store conversions reshape results.
Viva Energy reported mixed quarterly results as falling convenience sales contrasted with modest growth in total fuel volumes across its retail and commercial portfolio. For the three months ending 31 December 2025, the company recorded an 11.4% drop in convenience sales, driven largely by a steep decline in tobacco revenue.
Tobacco sales fell 33.6% year‑on‑year, which Viva Energy said was “due to the continued impact of illicit trade on this part of the sector.” Excluding tobacco, convenience sales were down 1.3%, reflecting trading interruptions from store conversions and the divestment of 15 Liberty Convenience sites.
Despite weaker sales, the company reported an improvement in performance metrics: total convenience revenue reached $431 million, with the gross margin climbing 4.5% to 42.2%. Viva said tobacco sales stabilised in the second half of 2025.
Across its Convenience & Mobility division, fuel volumes were affected by network changes but remained resilient. Adjusted fuel sales declined 1.5% compared with the same period in 2024, although total company sales volumes rose 1.1%, supported by growth in its Commercial & Industrial segment, particularly aviation, offsetting softer marine fuel demand.
The company continued its retail transformation during the quarter, opening 35 OTR‑format stores over FY2025 through new builds, rebuilds and conversions, including five Liberty conversions in the final quarter. Viva Energy’s network now spans 985 locations, including Shell Coles Express, Reddy Express, independently operated Shell and Liberty sites, and locations managed through its partnership with Westside.
