Asda On the Move conversions push EG group's turnover, profit

EG Group has reported a rise in profits and sales in for Q3 2022 following a “resilient” performance from its food business and grocery division, including Asda On the Move store conversions.

In the three months to September 30, group EBITDA for the petrol station forecourt and convenience retail business rose by 10 per cent to £391 million, while total revenues soared by 23.8 per cent over the same period, to £7.3bn.

EG Group said its foodservice operation saw gross profit increasing 21 per cent year-on-year to £172m, driven by “acquisitions and new openings” across continental Europe and the UK. Some 14 new locations opened in the UK alone, taking the total number of foodservice outlets to 1,895.

Growth was also driven across the group’s grocery and merchandise operations with gross profit for the quarter increasing by 5 per cent year-on-year to £322m. EG Group attributed this increase to the positive impact of Asda ‘On the Move’ store conversions as well as to the opening of new-to-industry grocery sites.

Zuber Issa CBE, co-founder and co-chief executive 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.

"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 rollout 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," reports quoted Issa as saying.

Looking ahead, Issa said the business remains "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".