EG Group achieved year-on-year growth of 11% in gross profit within its foodservice business, during the second quarter, to $177m (£153m), boosted by the contribution from its acquisitions of Leon and Cooplands Bakery last year.
Growth within foodservice operations is also underpinned by its pipeline of new sites opening across the UK&I and continental Europe, with 33 new outlets opened in the three months to 30 June 2022 (Q2), bringing its total to 1,889.
Foodservice gross profit was $993m in the half year to date – and increase of 28.9% versus 2021. However, like-for-like growth in foodservice growth profit was down 8.9% to $146m, compared to $160m, in Q2, but was up +3.3% for the year to date, at $280m.
EG Group also announced the appointment of Michael Bradley as group chief financial officer. He will replace Paul Altschwager, who has informed the board of his decision to step down as group CFO. Altschwager will leave EG Group in July 2023.
In July Leon announced it would be launching self-serve coffee kiosks in 68 EG Group-owned petrol forecourts across the UK, following a successful trial.
Group revenue was $6.7bn for the second quarter (+33.5%), and $12.2b for the year to date (+32.2%), with group EBITDA for Q2 consistent with the previous year – up 0.2% to $381m on a constant currency basis.
Speaking at the time of its Q1 update in May, Zuber Issa said the momentum within its foodservice business “serves to underline our belief that Foodservice represents the biggest opportunity for EG Group globally”.
The group launched its branded ultra-fast electric vehicle charging proposition, EV Point, last month, at its flagship Frontier Park site in Blackburn, with early trials showing a significant percentage of EV customers completing purchases in the group’s foodservice and grocery outlets, while charging their vehicles.
It plans to introduce the new charging points to other locations before the end of this year.
Zuber Issa CBE, co-founder and co-CEO of EG Group, commented: “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.
“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.”
