Fuel distribution company Maxol has reported profits of €17.8 million for 2019, up on €15.5m from the previous year - and has cited its move into greener energy sources earlier in the year as a way to offset the massive impact the 2020 coronavirus pandemic has had on its business.
Facing up to challenges
Speaking at a media briefing, Brian Donaldson, the CEO of Maxol who has served the company in that position since 2016, said that its plans to celebrate its centenary year of operations in Ireland had been wrecked by the Covid-19 crisis, like so many other companies: "We had a packed schedule of celebratory activities that began with a large-scale national radio sponsorship. We had plans for our biggest-ever retailer conference, events with our brand ambassador, Jacob Stockdale, and at that point, we were finalising the last chapters of our centenary book. Then the pandemic hit.
"We had never seen anything like it. Within two weeks, we had invested more than €50,000 across the business in health and safety measures. Businesses had to take unprecedented measures in unprecedented times, and Maxol was no different; we reduced average serving times from three to two minutes in a massive effort to reduce time instore, along with queuing time outdoors. Perspex screens, enhanced cleaning, staff training and a further investment in advertising to let people know that we remained open and committed to serving communities safely ran side by side with our daily operations."
Mr Donaldson said Maxol, which employs more than 1,000 people across the group (North and South), including at its 237 forecourts, was 'an adaptable and agile' business, adding that while fuel sales plummeted and all eat-in dining options at its sites had to be suspended throughout the middle part of 2020, there was now some light at the end of the tunnel: "Eight months on, the dust has settled somewhat and we are fortunate in that we have nonetheless been in a position to make some exciting announcements and implement positive changes."
Green energy move
Since 2012, Maxol has invested almost €200m in both new retail sits and the redevelopment of its existing network. That injection of cash continued this year, despite the pandemic, with €20m funnelled into 16 locations across the country including Dolphin's Barn, Ballinteer, Dooradoyle, Ardbrae and Newbridge. Further, Maxol's first greenfield location since 2016 opened at Rathnew, Co. Wicklow, creating 20 new jobs in an investment of €3.75m. The group also has a €14m programme of development slated for 2021, which will see the conclusion of the company's Capex initiative.
And in July, Maxol moved into the green energy sector by launching a new partnership firm, Bright, with Ciaran and Stephen Devine, of Evermore Energy. Mr Donaldson said: "We are a hugely ambitious company, continuously looking at ways in which we can differentiate, diversify and evolve," said Mr Donaldson. "Bright, which is the coming together of two family-owned businesses was a huge step for us, and indeed one of the most important on our environmental journey. Bright is a genuine challenger in the energy market; it is value-led, easy to use and understand, and offers everything in one place using one tariff and app-based technology."
A shift to more environmental options has been ongoing throughout recent years within Maxol Group, as it was one of the first retailers in Ireland to offer 100 per cent compostable cups and lids for its on-site hot drinks, and the company has been installing compostable and recyclable bins across all its service stations to support customers' recycling efforts. Beyond this, Mr Donaldson explained: "We also harvest rainwater for our carwashes. It's about the journey for us and taking steps to create a more sustainable business model. It isn't something that can happen overnight, but we are taking a well-thought out and realistic approach when it comes to reducing our carbon footprint. Only in the last couple of weeks, we announced a new carbon offsetting programme in association with Greenprint, that aims to offset 100 per cent of carbon emissions with our new premium fuel range. It's another exciting step for us in the future of greener motoring."
On that last subject, Maxol's forecourts have electric-car charging points in certain locations, as consumers move away from fossil-fuel power for their vehicles. There are now charging points at eight Maxol service stations, situated in Dublin, Cork, Wexford, Meath, Kerry, Derry, Antrim and Down.