EG Group reports record quarterly profits

The retailer posted a 90% year-on-year increase in group EBITDA to $478m (£370m) in the three months to September 30, up 54% on a like-for-like basis.

Grocery and merchandise both performed well, achieving a gross profit rise of 45% compared with the third quarter of 2019, and 4% on a like-for-like basis.

EG Group reported positive sales in many of its markets including the UK and Ireland, Germany, the Benelux countries and Australia.

While the retailer’s foodservice sites were closed during the second quarter, EG Group said that they are all now fully operational and those in the UK, Ireland and the Benelux region returned to profit by the end of September.

Overall, foodservice gross profit increased by 79% on a reported basis and 12% on a like-for-like basis.

Co-founder and co-chief executive Mohsin Issa said: “To deliver such a strong performance in the third quarter, resulting in a record quarter of profitability for the group, is testament to the resilience and differentiation of our best-in-class, diversified business model.

“We are grateful to the thousands of our front-line colleagues who continue to provide an essential service to millions of customers in our global communities, including to thousands of healthcare workers and first-line responders.

“Looking ahead, while the impact of tightening lockdown restrictions in a number of markets is yet to be fully seen, EG Group is strongly positioned to weather these external challenges and continue driving long-term growth across our global business.”