Profit drops at EG Group as cost-of-living squeeze continues

EG Group saw a slump in second quarter profits as the petrol station forecourt and convenience retail business stated that “cost-of-living squeeze remains front of mind for all of us”.

According to trading results to June 30 2022, the group’s revenue increased by 24.4 percent to £132 billion during the first half of the year.

However, the group’s profits dropped from £559m to £542m over the full six-month period. Group EBITDA for the second quarter also fell by 6.5 percent to £307m year-on-year, despite total revenue for the three-month period increasing by 23.7 percent to £7.2bn.

Gross profits in the grocery and merchandise division were £298m over the three months to June, up 0.4 percent from £297m the previous year, offering consistency despite “inflation impacting retail prices”.

Foodservice gross profits were £152m, up from £138m a year ago, largely driven by store acquisitions across Europe and the UK, which took the total number of outlets to 1,889.

Gross fuel profits across the global forecourts business also increased over the quarter, reaching £441m, up 7 percent from £412m in 2021. Fuel profits for the half-year jumped by 11.1 percent, reaching £857m, up from £771.

Noting this jump, EG Group highlighted the continued volatility around wholesale fuel costs due to the “ongoing dislocation in energy markets from geopolitical events”, adding that fuel margins were flat on a quarter-on-quarter basis.

“The cost-of-living squeeze remains front of mind for all of us, and the group is laser-focused on supporting our employees and helping customers with value for money at this time” said EG Group’s co-founder and CEO Zuber Issa CBE.

“Alongside acting as a responsible global convenience retailer, we recognise our role in contributing to a more sustainable future. We are pleased to be trialing our own-branded ultra-fast electric vehicle chargers in the UK and plan to introduce them to additional locations by the end of this year,” reports quoted Issa as saying.