Delek US' Retail Division Red Hot in 2015
BRENTWOOD, Tenn. — Retail sales at Delek US Holdings Inc. in 2015's first quarter have been much higher year over year, with same-store fuel sales increasing 9 percent thus far, Uzi Yemin, chairman, president and CEO, reported during Tuesday's 2014 fiscal fourth-quarter earnings call.
The parent company to MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart convenience stores cited a combination of taking market share from competitors, maturation of large-format mega stores, and confident customers due to lower gas prices as the three reasons for its strong retail start in 2015.
"Even though we've had horrible weather [in the Midwest], we see demand coming up," Yemin said. "Consumers are feeling relief at the pump. We are even seeing record sales at our older [legacy] stores."
Delek US' retail division also had an excellent fourth quarter, which ended Dec. 31. In-store merchandise sales increased 4.3 percent in the quarter, totaling $101.2 million vs. $93.6 million in 2013's fourth quarter.
Retail fuel sales saw a healthy increase of 3.5 percent (12 million gallons) to 113 million gallons. Retail fuel margins improved nearly 10 cents per gallon to 23.8 cents per gallon.
Overall, Delek US' retail division earned a record net profit of $22 million in the fourth quarter, triple what the company earned in the year-ago period.
Falling gas prices, along with strong sales at its large-format stores, were credited as the primary contributor to Delek US' fourth-quarter results. The company opened its 64th large-format store during the quarter.
Companywide, Delek US posted a net profit of $37.5 million in its most recent quarter, compared to a loss of $4.7 million in 2013's fourth quarter.
"We performed well in the fourth quarter across all three [of our] operating segments," said Yemin.
Brentwood-based Delek US Holdings Inc. operated 365 convenience stores as of Dec. 31.