Leon achieves ‘pleasing performance’ in Q2

EG Group has said strong progress has been made on the integration of Leon into the group, with “a pleasing performance” seen in the second quarter of 2021.

In a trading update for the three months to 30 June 2021, the group – which acquired Leon in April this year – confirmed plans to open around another 10 Leon restaurants in 2021.

Total revenues for the group stood at $6.5bn in the second quarter, up 57.7% on the second quarter of 2020, with a strong performance seen in its foodservice operations. Gross profit within foodservice was up 231% year-on-year, at $153m, and +219% on a like-for-like basis.

The group said the increases seen in its foodservice arm had been driven by continued consumer demand for to-go and delivery services and reflected an “extraordinary” year-on-year performance due to the Covid restrictions in place over the same period last year.

Group EBITDA for Q2 2021 increased by 23.7% to $380m.

Zuber and Mohin Issa, founders and co-CEOs of EG Group, said: “We continued to make good progress in the second quarter, with a particularly strong performance from our foodservice business.

“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.”

They said the resilience of its business model had been demonstrated during the pandemic and it had emerged as an even stronger business as it enter the second half of the year with confidence.