EG Group profits for the second quarter slumped, despite surging sales, as the cost-of-living crisis and inflationary environment took their toll.
In its results for the three months to June 30, group EBITDA slipped 6.5% to $355m (£308m) while group revenues jumped 23.7% to $8.3bn (£7.2bn).
In the year-to-date figures for the first half, EBITDA dropped 3.1% to $625m (£542m) and revenues were up 24.4% to $15.2bn (£13.2bn).
EG Group blamed record-high inflation and the spiralling cost-of-living crisis, combined with fluctuations in international currencies, for the downturn.
The main driver of growth for the business continues to be foodservice, which reported a 10.7% increase in profit to $177m (£153m) in the second quarter and a 28.9% increase across the first half to $352m (£305m).
Grocery and merchandise gross profits jumped 0.4% to $346m (£300m) in the second quarter and 0.8% to $662m (£574m) across the half-year on a reported basis.
Total revenues on a like-for-like basis were up 21.2% to $14.7bn (£12.7bn), while group EBITDA was down 5.5% to $602m (£522m) for the same period.
Net debt grew $52m (£45m) to $9.4bn (£8.2bn), while liquidity headroom shrunk $378m (£328m) to $971m (£843m).
Co-founder and co-owner Zuber Issa said: “Despite a backdrop of challenging market conditions, we continued to perform resiliently in the second quarter of the year, supported by our geographically diverse portfolio and complementary foodservice, grocery and merchandise and fuel operations.
“The cost-of-living squeeze remains front of mind for all of us and the group is laser-focused on supporting our employees and helping customers with value for money at this time.
“EG’s robust performance over the quarter has demonstrated our adaptability and, while the economic outlook remains uncertain, we look forward to the second half of the year confident in our ability to outperform the wider market.″
- Never miss a story – sign up for Retail Week’s breaking news alerts
No comments yet