EG Group profits slump against tough comparable but hails foodservice success

The forecourts group, which is owned by new Asda owners the Issa brothers, reported EBITDA down 10.2% to £428m year-on-year when restrictions were lifted.

EG said the quarter’s EBITDA was still the second highest recorded for the group.

Sales for the retailer and petrol business soared 20.4% in the three month period to September 30, to £7.2bn.

EG Group attributed much of this to the success of its foodservice division, with gross profit increasing by 46% year-on-year and 36% on a like-for-like basis, bolstered by new outlet openings and acuquisitons.

During the period, EG continued to expand its food-to-go outlets including Greggs, KFC and the newly-acquired Leon.

EG has also rolled out an Asda-on-the-Move proposition to its forecourts, and begun introducing foodservices within Asda stores.

A joint statement from the Issa brothers said: “We are pleased with the progress of the business over the past quarter.

 While all parts of EG Group made a good contribution, Foodservice was the stand-out performer during the quarter, driven by strong customer demand for delivery, click and collect and the overall quality, range and locations of our Foodservice outlets. 

Against a recordbreaking comparative period last year, this quarter’s results are in-line with expectations and further validate EG Group’s vision of delivering a modern and compelling retail experience, to support our global growth strategy.

“The start of the Q4 period has been characterised by ongoing macro-uncertainty, with some of our international markets facing renewed lockdown restrictions. 

“Nevertheless, our business has demonstrated its resilience during the pandemic period, with customers continuing to make essential journeys, holidaying at home more often and showing increasing demand for food delivery, convenient local shops, click and collect, delivery and food-to-go services. 

“With the combination of our proprietary brands, LEON and Cooplands, and our strategic partnerships with some of the world’s most popular brands, we are well-placed to make further progress in the final quarter of the year.”