The Convenience Shop (Holding) plc has published its financial statements for the year ended 31st December 2024, revealing a year marked by both significant investment and a challenging retail environment.

Group turnover remained steady at €46.4 million, flat when compared to the previous year. However, profitability was impacted, with gross profit falling to €5.9 million from €6.8 million in 2023, and profit before tax declining to €1.6 million from €3.1 million. EBITDA, as adjusted for the impact of IFRS 16 Leases, stood at €3.4 million (2023: €4.5 million).

The group attributed the reduction in profitability to substantial investments in its operational capabilities, particularly in workforce expansion, in preparation for its growth plans. Delays in the opening of new outlets, originally slated for earlier in the year, meant that the returns from these investments are expected to materialise in 2025.

The Convenience Shop faced heightened competition within the retail FMCG market, with both established players and new entrants expanding their presence. Increased investment in infrastructure and talent acquisition across the sector led to higher labour and marketing costs, further affecting margins.

Despite the challenges, the group maintained a strong liquidity position, ending the year with cash and cash equivalents of €1.9 million, compared to €2.2 million in 2023. It generated a net cash flow from operating activities of €5.3 million, an increase from €4.1 million the previous year, which was largely reinvested in enhancing customer experience and operational strength.

During 2024, the group invested a record €1.9 million in property, plant and equipment, underlining its commitment to long-term growth. In October, it unveiled a new flagship head office in Qormi, a 1,350 square metre facility featuring modern office spaces, a retail outlet, a family-friendly food court, and a cafeteria, aimed at enhancing both employee and customer experiences.

The group’s net borrowings (excluding IFRS 16 lease liabilities) increased slightly to €4.6 million (2023: €4.3 million), while total equity stood at €9.7 million, marginally down from €9.8 million. Consequently, the debt-to-equity ratio rose to 0.48 from 0.44 in 2023.

Operationally, the group continued renovating its outlets and invested in energy-efficient equipment to enhance sustainability while maintaining a consistent standard across its store network. It also upgraded its accounting and human resources systems, aiming to streamline processes and improve employee engagement.