The number of Ruch outlets has been decreasing significantly for years. These declines mainly concern kiosks.
At the end of June 2024, the company had only 411 kiosks and lounges, which represents a decrease of 4% compared to 428. However, in the middle of last year 760 of them were in operation, which means there was a drop of 46% in one year.
It was no different in previous years. At the end of 2019, Ruch had 1,333 points of sale, a year later – 1,209, at the end of 2021 – 1,027, and at the end of 2022 – 814. Therefore over 4.5 years, their number decreased by 922, or 69.2%.
READ ALSO: Press Sales Chief Says Goodbye to Ruch
Orlen, recently answering questions from Wirtualnemedia.pl, announced that Ruch will develop other business formats in addition to kiosks. The latter will continue to decline. – – Currently, the Ruch retail network includes approximately 420 points, of which almost 30 are new Orlen w Ruchu formats. About 130 points, mainly newsstands, have prospects for further development, the company’s press service reported.
Orlen took over Ruch in the fall of 2020, paying PLN 130 million for 64.9% of the shares in the company that was then undergoing restructuring (the remaining shares belong to other state entities: PZU and Alior Bank). Last year, with a decrease in sales revenue by 10.4% to PLN 799.61 million, Ruch’s net loss increased from PLN 61.25 to PLN 86.07 million, and in 2021, with revenue of PLN 891.7 million, the net loss amounted to PLN 42.9 million.
In April this year, the company completely withdrew from press distribution, including to its own kiosks and showrooms. Kolporter has been delivering there since May.
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Ruch, as well as the Polska Press publishing house acquired by Orlen in early 2021, are currently being prepared for sale by the energy company. – Press publishing is a sideline activity and has no business justification. Therefore, we will restructure the assets of Polska Press and conduct their reliable assessment to attract an investor – Orlen told us. – The core business of the Orlen Group does not include the activities of Ruch, which is also permanently unprofitable – he added.
Orlen has 3,500 gas stations
At the end of June this year, the Orlen Group had 3,505 of its own gas stations, 348 more than the previous year. This increase is mainly due to the acquisition earlier this year of 267 branches of the Austrian chain Turmöl.
In Poland, the number of Orlen’s own stations increased in the year 10 to 1,929, and its market share reached 36.1%. (2.1 percentage points more than last year). The increase in Hungary from 59 to 138 points of sale is the result of the acquisition of additional MOL stations as part of the sale of the majority of the Lotos Group’s retail business.
Orlen also has 605 stations operating under the franchise model, up from 560 a year earlier. The number of stores in stations increased by 111 to 2,681 during the year.and the number of alternative charging points (mainly electric car charging) – from 144 to 816.
Orlen stations and Ruch kiosks with the highest profits
The entire retail segment of the Orlen Group generated PLN 16.35 billion in revenue in the second quarter of 2024, following a 20.8% year-on-year increase from PLN 13.53 billion. The company reported that sales volume increased by 18%.Sales volumes of diesel and gasoline also increased by 18 percent. In addition to the volume growth, the curtailment of the Austrian fuel network had a positive impact on revenue dynamics.
The segment’s operating expenses increased from PLN 13.16 to PLN 15.78 billion, mainly due to the increase in operating costs of gas stations. As a result EBITDA increased from PLN 661 to PLN 893 million.
The entire Orlen Capital Group made a net profit of PLN 2,761 million in the first half of 2024, PLN 12,729 million more than in the previous year. The company’s revenues also decreased. The company reduced its investment plan for this year by 9 percent to PLN 35.3 billion.
