StockMarketWire.com - Africa-focused fuel retailer Vivo Energy said its sales volumes rose 7% in the first quarter on-year, putting it on track to meet to its annual guidance for low mid-to-mid double-digit percentage growth.

Vivo said the quarterly performance was driven by good underlying growth in existing 15 Shell-branded markets and a one month's of contribution from the eight new Engen-branded markets and additional sites in Kenya.

In March, volumes grew 13% higher on-year.

Gross cash unit margin of $69 per thousand litres inwas in line with full year guidance of high sixties per thousand litres, but down from $74 per thousand litres on-year.

Retail unit margins had stabilised in the quarter due to an improvement in market conditions in deregulated markets.

Commercial unit margin benefited from a 'good' performance in the LPG and marine businesses, while lubricants margins began to recover.

'We are pleased to have delivered a strong start in the first quarter, in line with our expectations, and in what is traditionally the slowest quarter of the year,' chief executive Christian Chammas said.

'We have moved quickly to integrate the new Engen businesses into Vivo Energy and are very excited about the opportunities that we see ahead of us in the new markets.'

'We now operate in a diverse portfolio of 23 high growth markets across Africa and are uniquely positioned to continue to deliver growth across our business.'



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