EG Group has reported a drop in first-quarter revenues, as fuel volumes soften despite growth from its foodservice division.

Sales at the petrol forecourt giant fell to £5.4 billion ($6.9 billion) for the 13 weeks ending 31 March 2025, down from £5.7 billion ($7.2 billion) during the same period last year.

The decline was largely attributed to lower fuel volumes and pricing, with like-for-like fuel revenue in the UK and Ireland down 9.7%. Overall, group revenue fell despite ongoing growth in higher-margin areas like foodservice, which saw continued customer demand.

In the UK and Ireland, total like-for-like revenue declined 6%, reflecting the pressure on fuel sales. However, foodservice delivered 4.5% like-for-like growth, with strong performance from EG’s branded and franchise-led offer. Grocery and merchandise sales were described as “resilient.”

Despite the revenue dip, Group EBITDA held steady at £288 million ($369 million), supported by a 60bps improvement in gross margin, which rose to 16.4%. The group credited this to a strategic shift towards more profitable categories such as food-to-go and grocery.

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“EG Group delivered a resilient performance in Q1 2025, despite macroeconomic challenges, with strong growth in foodservice and good momentum in grocery & merchandise,” said EG Group co-CEO and co-founder Zuber Issa.

“The Group continues to deliver against its strategic priorities, notably the ongoing rollout of foodservice and improvements to the customer experience.”

The results come just weeks after Asda co-owner Mohsin Issa stepped down as chief executive of petrol station chain ahead of its initial public offering.

“Now is the natural time for me to step back from my day-to-day duties at EG as it embarks on the next stage of its journey,” said Issa in a statement.

“Following the sale of the majority of the UK business to Asda, the group is a very different company now. The US market is now the largest region by sales… and where EG needs to have its lead executives based.”

EG also is expected to list on the New York stock market as early as this year, with an initial public offering (IPO) that could value the business at around $13bn (£10.7bn) and would allow the brothers’ private equity partner TDR Capital to cash out some of its investment.