The global petrol station forecourt operator, which owns UK food-to-go and coffee chain LEON, earned $177m profits from its foodservice operations in its second quarter – but overall profits fall amid soaring energy costs
EG Group said that foodservice profits increased 11% to reach $177m | Photo credit: EG Group
UK-based EG Group has cited the strong performance and recent expansion of its foodservice operations in Europe as underpinning its ‘resilient’ second quarter.
Although total group profits fell 6.5% in the three months to 30 June 2022 following soaring energy costs, EG Group reported growth for its foodservice business.
The company, which owns UK food-to-go and coffee chain LEON and bakery Cooplands and operates licensed branches of prominent brands such as Starbucks, Cinnabon and Greggs, said that foodservice profits increased 11% to reach $177m.
EG Group cited its 2021 acquisitions and new openings in the quarter for driving growth. The forecourt operator launched 33 new foodservice outlets in the period to reach a total of 1,189.
In May 2022 the business also acquired 285 forecourts in Germany from Austrian petrol company OMV Group.
“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,” said Zuber Issa, co-CEO, EG Group.
Alongside its financial release, EG Group also announced the appointment of former High Speed Two (HS2) executive Michael Bradley as Group Chief Financial Officer to replace Paul Altschwager, who will leave EG Group in July 2023 following a transitionary period.