The global petrol station forecourt operator says the strong performance of its foodservice brands, which include food-to-go and coffee chain LEON has offset rising labour and energy costs
EG Group opened a further 14 foodservice outlets during the quarter to reach 1,895 sites | Photo credit: EG Group
UK-based EG Group has credited the expansion of its foodservice brands as strongly contributing to its strong third quarter sales.
In the three months ended 30 September 2022, EG Group generated $8bn revenues – 12% higher than for same period in 2021.
Gross profits for it foodservice brands grew 5% to $179m, driven by acquisitions and new stores across Continental Europe, the UK and Ireland.
EG Group opened a further 14 foodservice outlets during the quarter to reach 1,895 sites.
Gross profit for the company’s fuel division increased 16% but fell 1% in its grocery and merchandise channel.
EG Group said total profits, which were also boosted by its recent US expansion, were largely offset by a significant increase in labour, energy and logistics headwinds.
“We are pleased with the third-quarter performance, which again proves the resilience of the group against the prevalent global uncertainty. Despite 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,” said Zuber Issa, co-CEO, EG Group.
EG Group owns UK food-to-go and coffee chain LEON and bakery café Cooplands. The company also operates licensed branches of prominent brands such as Starbucks, Cinnabon and Greggs.
In July 2022 LEON began rolling-out its own branded self-serve coffee kiosks in 68 EG-operated petrol forecourts across the UK.
The food-to-go and coffee chain is now targeting 200 self-serve kiosks across the UK by the start of next year, with plans to launch more than 100 self-serve coffee kiosks in Asda supermarkets.
Additionally, LEON plans to operate a total of 100 bricks-and-mortar stores by the end of 2022.
Alongside its quarterly results, EG Group also announced the promotion of Imraan Patel to the role of Chief Strategy & Business Officer. Patel, who previously served as Group General Counsel and Company Secretary, will support co-CEOs Mohsin and Zuber Issa in developing and implementing corporate strategy initiatives.