Issa brothers’ EG Group posts subdued profit due to cost of living pressures on consumers
The Issa brothers’ EG Group has posted subdued profit for the second quarter, as the petrol station forecourt operator said “the cost-of-living squeeze remains front of mind for all of us.”
EG Group saw group EBITDA slump 6.5 per cent to $355m (£308m), for the three months to 30 June, it shared on Thursday.
The group said the dip was “primarily attributable to adverse foreign currency movements, alongside the impact of ongoing inflationary and cost-of-living pressures on customer behaviour.”
However, the company saw group revenue increase 23.7 per cent to $8.3bn (£7.2bn).
Its food service operations saw buoyant growth, as gross profit increased 11 per cent year-on-year to $177m, fuelled by acquisitions last year.
Grocery & merchandise gross profit was consistent, even though inflation hit retail prices, increasing by 0.4 per cent to $346m.
The firm, which is run by the billionaire duo who also own supermarket brand Asda, also announced that Michael Bradley would step into the role of group chief financial officer. Bradley will replace Paul Altschwager.
“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,” Zuber Issa CBE, co-founder and co-CEO of EG Group, said.
Earlier this year, the forecourt operator said it would create some 22,700 jobs in the UK in the next four years.
EG Group said it would provide some 32,000 jobs across the world over the next few years, thanks to investment in its foodservice arm.
Jobs will be created across EG’s brands including fast food chain Leon and bakery brand Cooplands, as well as its forecourts and EG food service concessions at Asda sites.