EG Group has reported a rise in profits and sales in for Q3 2022 following a “resilient” performance from its food business and grocery division, including Asda On the Move store conversions.
In the three months to September 30, group EBITDA for the petrol station forecourt and convenience retail business rose by 10% to £391m, while total revenues soared by 23.8% over the same period, to £7.3bn.
EG Group said its foodservice operation saw gross profit increasing 21% year-on-year to £172m, driven by “acquisitions and new openings” across continental Europe and the UK. Some 14 new locations opened in the UK alone, taking the total number of foodservice outlets to 1,895.
Growth was also driven across the Group’s grocery and merchandise operations with gross profit for the quarter increasing by 5% year-on-year to £322m. EG Group attributed this increase to the positive impact of Asda ‘On the Move’ store conversions as well as to the opening of new-to-industry grocery sites.
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EG Group is owned by brothers Mohsin and Zuber Issa, who also own supermarket giant Asda. They have previously said they are ‘laser-focused’ on helping their staff and customers through the current cost-of-living crisis.
Zuber Issa said he was pleased with the Q3 performance, which “proves the resilience of the Group against the prevalent global uncertainty”.
“Despite these macro-economic challenges, we continued to deliver against our strategic objectives by our ongoing investment in non-fuel retail, driving further innovation and cost efficiencies with our major brand partners and finally, strengthening our convenience store proposition with the ongoing rollout of Asda ‘On the Move’ across our UK forecourt network.
“The continued hard work of our colleagues was critical in the last quarter, and we remain committed to supporting them, our customers and our communities during these challenging times. Looking ahead, we remain cautious about the macro-economic outlook, but are confident that we have a highly resilient business, which is well-placed to outperform the wider market.”
The publication of EG Group’s first ESG report in October was also hailed as a “milestone moment” for the company, setting out its net zero ambitions and energy transition plans to lower-carbon fuels.
Issa also said the group had been ” hugely encouraged” by the initial trial of its ultra-fast electric vehicle chargers, which will be rolled out to a further 20 EG sites by the end of this year.
