EG Group hails ‘resilient’ third quarter as revenues and EBITDA increase

Zuber Issa

Blackburn-based international petrol forecourts and food business, EG Group, achieved a resilient third quarter, with revenues and EBITDA both improving.

Total revenues for the three months to September 30, 2022, rose 23.8% to $8.882bn on constant currency, while group EBITDA increased by 9.8% to $470m. Year to date revenues showed a 29% improvement, to $26.005bn, while EBITDA rose by 5.5% to $1.132bn.

Net debt, at June 2022, stood at $9.403bn, and improved to $9.082bn by September. Cash and cash equivalents, for the same periods, respectively, were $418m and $322m.

EBITDA was primarily driven by growth in the US, Australia and Continental Europe, including the group’s acquisition from OMV of 285 forecourts in southern Germany.

Foodservice operations continued to grow with a further 14 foodservice outlets opening during the quarter – taking the total to 1,895 – with gross profit increasing by 21% year-on-year to $207m for the quarter on a constant currency basis, driven by acquisitions and new openings across Continental Europe and UK&I regions.

Growth continued across the group’s Grocery & Merchandise operations with gross profit for the quarter increasing by five per cent year-on-year to $387m on a constant currency basis, attributable to the positive impact of Asda ‘On the Move’ store conversions in the UK&I and the opening of new-to-industry grocery sites.

Fuel gross profits increased during the quarter, driven primarily by growth in the US, but this was largely offset by a significant increase in costs, with year-to-date overheads increasing due to labour, energy and logistics costs

EG has opened 65 Asda ‘On the Move’ convenience stores across the group’s UK forecourt network, alongside continuing to introduce additional foodservice outlets including its proprietary brands, LEON and Cooplands, and third-party branded offerings

Imraan Patel was promoted to chief strategy and business officer from October 1, 2022, following his appointment as group general counsel and company secretary in 2016. He will support the co-CEOs in developing, communicating and implementing key corporate strategic initiatives across the group and will play a key role in determining the group’s strategy and its country operations.

Zuber Issa, co-founder and co-CEO of EG Group, said: “We are pleased with the third quarter performance, which again proves the resilience of the group against the prevalent global uncertainty.

“During this period, the benefit of our geographic diversification was demonstrated as the performance of the US and Australian businesses offset the weaker UK trading, with significant cost headwinds in energy, labour and logistics costs that also impacted our other markets.”

He added: “Despite these macro-economic challenges, we continued to deliver against our strategic objectives by our ongoing investment in non-fuel retail, driving further innovation and cost efficiencies with our major brand partners and finally, strengthening our convenience store proposition with the ongoing roll-out of Asda ‘On the Move’ across our UK forecourt network.

“We have been hugely encouraged by the initial trial of our ultra-fast chargers and infrastructure, evpoint. Our disciplined rollout will see ultra-fast charging being made available at a further 20 EG sites by the end of this year and we are exploring a range of options to further accelerate this proposition.

“We are already seeing the benefits of combining EV charging infrastructure with our multi-service sites, which allow consumers to enjoy a meal or a cup of coffee, or shop for groceries while they wait for their car to charge.”

He said: “The continued hard work of our colleagues was critical in the last quarter, and we remain committed to supporting them, our customers and our communities during these challenging times. Looking ahead, we remain cautious about the macro-economic outlook, but are confident that we have a highly resilient business, which is well placed to outperform the wider market.

“Finally, I would like to congratulate Imraan Patel on his recent promotion, and welcome Michael Bradley as our newly appointed group CFO. Along with the rest of our senior leadership team, I believe the group has the necessary strategic leadership expertise and depth of operational experience to ensure we successfully traverse the economic challenges facing everybody.”

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