EG Group profits hit by cost-of-living crisis in Q2

The Issa brothers-owned EG Group has seen its profits slump in Q2, as earnings fell by 6.5% to $355m (£307m) year-on-year amid “ongoing inflationary and cost of living pressures on customer behaviour”.

Despite this, total revenues were up by 18.4% to $7.9bn (£6.8bn) on a like-by-like basis.

The uptick in revenue was partly driven by its performance in foodservice, with profit increasing by 11% year-on-year to $177m (£153m).

Meanwhile, grocery and merchandise profit remained consistent in the period, as gross profit remained consistent despite inflation impacting retail prices, rising by 0.4% to $346m (£300m).

The retail group opened 33 foodservice outlets in the quarter, bringing in the total number of group outlets to 1,889.

In its latest results, the group acknowledged the continued volatility around wholesale fuel costs due to the ongoing dislocation in energy markets from geopolitical events, as well as the flat fuel margins on a quarter-on-quarter basis.

Zuber Issa, co-founder and co-CEO of EG Group, said: “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 complimentary foodservice, grocery and merchandise, and fuel operations.

“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.”