Asda owner’s EG Group has reported an increase in profits in the first quarter of the year, attributing a strong performance in its food business.
For the three months ended 31 March 2022, its forecourt and food retail business reported a 2% increase in group EBITDA to £2.15 million.
Revenues also saw a 25.1% increase to £5.5 billion.
According to the company, owned by Mohsin and Zuber Issa, its foodservice operation saw a 54% rise in gross profit year to £140 million, and up 20% on a like-for-like basis.
As a result, the company said its foodservice growth continues to be “supported by the group’s pipeline of openings and investment in EG’s existing estate”.
Grocery and merchandise gross profits slightly increased up 0.8% to £234 million, with margins staying comparable to the previous year despite increases in wholesale and distribution costs.
“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,” Zuber Issa said.
“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.”