The success and profitability of our current Consumer Services business have been defined by fuel retailing for the past 75 years. On the back of our strong refining and logistics capabilities and widespread legacy network, we have built a leading fuel retail operation in the CEE region, with a 10 million retail customer base and one million daily transactions.
Despite healthy growth of fuel consumption in Central Eastern Europe in the past several years, advancements in technology and new consumer habits have fundamentally changed what has so far been considered fuel retailing. Looking at the next five years, fuel consumption is still expected to grow in CEE, however, our long-term outlook is that fossil fuels will lose their monopolistic dominance by the end of the next decade. At MOL, we realized that we need to go beyond the current offer to thrive in this new environment. Therefore, as part of MOL Group 2030 strategy, we will transform our retail operations by tapping into growing areas of consumer demand and take part in the reinvention of transportation in CEE.
„In 2017 we increased our EBITDA by double digits as both our fuel and non-fuel earnings continued to grow. As a result of the further rollout of “Fresh Corners” the growth of non-fuel margin continued to outpace fuel margin growth. We also made decisive steps in the implementation of our ground-breaking and innovative strategy to drive the revolution of transportation in CEE. As the first building blocks of our mobility services, we have launched our fleet management subsidiary and have started to ramp up our alternative fuel presence and have introduced our new car sharing service, MOL LIMO. In 2018 we will maintain strong financial delivery with further scrutiny on costs, while at the same time we will continue on our transformational journey to become a leading 360° service provider by gearing up our digital capabilities.”
Group Consumer Services Executive Vice President
KEY ACHIEVEMENTS IN 2017
- 2017 was a strong year with all-time high financial performance.
- Consumer Services delivered record high HUF 97 bn (USD 358 mn) consolidated EBITDA
- After the successful integration of networks acquired from ENI in Hungary and in Slovenia, 1,881 strategically located service stations in 9 countries can fulfil the needs of customers on the go from Bucharest to Adriatic and from Belgrade to Prague.
- 447 Fresh Corner stations operated by end of the year.
- 41 million cups of coffee sold at service stations in 2017.
- All the proposed mobility initiatives: B2B fleet solutions, B2C car sharing platform and EV-charger deployment were launched.
- On the basis of own car pool, MOL Fleet Solutions have successfully entered the external fleet management market.
- By the end of 2017, the number of managed cars by MOL Fleet Solution was roughly 1,000.
OUTLOOK FOR 2018-2020
- Deliver an average 7% year-on-year EBITDA growth rate over the upcoming years in order to reach the target of USD 450 mn by 2021.
- Bring closer to our customers the Fresh Corner concept, by doubling the number of stations where premium coffee will be offered as the best coffee experience to our customers.
- Setting up 252 chargers for electric vehicles in CEE in cooperation with other partners within the framework of NEXT-E project funded by the European Commission (INEA).
- Extend MOL Limo’s service area and increase the fleet size year by year.
- Enter other markets with MOL Fleet Solution in the neighbouring countries, like Slovakia and Croatia.