EG Group profits and sales soar as it eyes Leon expansion

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EG Group has reported soaring profits and sales for its second quarter, driven by strong trading in its grocery branch and the continued growth of its foodservice arm.

The petrol forecourt business reported a 23.7% increase in EBITDA to $380m (£276.9m) and a 57.7% spike in sales to $6.5bn (£4.74bn) during the three months to June 30.

EG Group in particular noted “continued resilience” in its grocery and merchandise arm with profits jumping 24% year-on-year to $351m (£255.7m).

Another strong performer during the period was EG Group’s burgeoning foodservice business, which soared 231.4% year-on-year to $153m (£111.5m). EG Group said this was “supported by continued customer demand for ‘to-go’ and ‘delivery’ services”.

The petrol and forecourt business, founded by the new owners of Asda, Zuber and Mohsin Issa, said gross fuel profits jumped 9% to $478m (£348.3m).

The group also completed the acquisition of food-to-go restaurant chain Leon during the period, and EG Group said it planned to open another 10 restaurants this year.

On Asda, the group said “transition plans [are] under way to facilitate completion of the Asda forecourts business” into EG Group. The sale of EG’s 27 UK petrol filling stations, required to complete the brothers’ acquisition of Asda, is expected to complete in the final quarter of the year.

EG Group co-founders and co-chief executives Zuber and Mohsin Issa, said: “We continued to make good progress in the second quarter, with a particularly strong performance from our foodservice business, driven by growth in customer demand for takeaway and delivery services and the easing of Covid restrictions across many of our countries. The group’s latest performance is further validation of our successful global strategy.

“We are also pleased to have completed the acquisition of Leon Restaurants and look forward to expanding its offering with c.10 new restaurant openings planned this year, including the brand’s first-ever Drive-Thru. The resilience of our business model has been demonstrated during the pandemic, and we have emerged as an even stronger business as we enter the second half of the year with confidence.”