The EG Group has reported a strong set of results for its fiscal second quarter, with profits and revenue growth driven by the growth of its grocery and foodservice units.
For the three months to 30 June 2021, overall revenue jumped to 57.7% to $6.5bn, while EBITDA was up 23.7% to $380m (+23.4% like-for-like basis). The group said the results highlight how it has bounced back from 2020, when Covid-19 lockdown restrictions “significantly impacted” its fuel forecourt and foodservice operations.
Gross profits from groceries and merchandise rose by 24% to $283m, foodservice gross profits surged up 232% to $153m, while fuel gross profits were up 9% to $478m.
For the six months to 30 June, revenues were up 20% to $11.8bn, with EBITDA up 15.7% to $645m. Gross profits grew by 9.7% to $645m for groceries and merchandise, by 189% to $263m for foodservice, and by 1.9% for fuel.
Zuber and Mohsin Issa, co-founders and co-chief executives of the EG Group, said: “The Group’s latest performance is further validation of our successful global strategy. 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.”
They added: “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.”
NAM Implications:
- As always, the key is to compare how your EG business compared by category…
- …and focus on ensuring you achieve and maintain your fair share of sales and investment.
