EG Group’s food retail business helps drive revenue to £5bn
Forecourt giant EG Group has reported a rise in profits and sales in the first quarter following a strong performance in its food business.
For the three months to March 31, 2022, the UK petrol station and food retail business reported a 2% increase in group EBITDA to £215 million and a 25.1% jump in revenues to £5.5 billion.
EG Group, which is owned by brothers Mohsin and Zuber Issa, said its foodservice operation saw gross profit increasing 54% year-on-year to £140 million and up 20% on a like-for-like basis.
The forecourt giant said foodservice growth continues to be “supported by the group’s pipeline of openings and investment in EG’s existing estate”.
EG Group opened a further 26 foodservice outlets in the period around the world, 21 of which were opened in the UK and Republic of Ireland — including Subway, Greggs, Cinnabon and Sbarro sites.
Grocery and merchandise gross profits inched up 0.8% to £234 million, with margins staying comparable to the previous year despite increases in wholesale and distribution costs.
EG Group co-chief executive Zuber Issa said: “EG Group performed resiliently in the first three months of the year. Against an uncertain and fast-changing backdrop, the business continued to make good progress against its strategic objectives across the group’s operations.
“The outlook for the year remains uncertain with household budgets already coming under significant inflationary pressure.
“However, we remain confident that the geographic diversity of our business, and our highly complementary grocery and merchandise, foodservice and fuel operations will continue to underpin our resilience and allow us to outperform the wider market.”