Petrol forecourt giant EG Group has reported a leap in profits and sales in the first quarter off the back of strong performance from its growing food business.

EG Group

For the three months to March 31, 2022, EG Group reported a 2% increase in group EBITDA to $270m (£215m) and a 25.1% jump in revenues to $6.9bn (£5.5bn). EG Group is owned by Mohsin and Zuber Issa, who also own supermarket giant Asda.

EG Group, in particular, highlighted the strength of its foodservice operation for the period, with gross profit increasing 54% year-on-year to $175m (£140m) 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”. 

The forecourt giant 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 $293m (£234m), with margins staying comparable to the previous year despite increases in wholesale and distribution costs. 

Fuel gross profit for the quarter increased by 16% to $481m (£384m) on the prior comparable period last year, but gross profit margins marginally reduced, compared with the quarter ending December 21, 2021, partially driven by increased market volatility due to the impact of geopolitical events on wholesale oil prices and demand.

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 strong performance in foodservice was supported by UK acquisitions from 2021 that contributed $40m (£32m) of gross profit across the quarter, while the business continues to benefit from ongoing investment and the rollout of new sites, including our proprietary brands and partnerships with franchise partners. This momentum only serves to underline our belief that Foodservice represents the biggest opportunity for EG Group globally.

“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.”

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