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The EG Group has reported that its revenues surged 25.1% year-on-year from $5.52bn (£4.4bn) to $6.91bn (£5.5bn) in the three months ending 21 March 2022 (Q1), driven by growth in its foodservice business.
Foodservice operations saw a 54% rise in gross profits to $175m (£139.7m), compared to $114m (£91m) in Q1 2021, up 20% on a like-for-like basis. As a result, group EBITDA increased 2% year-on-year from $265m (£211.58m) to $270m (£215.57m), alongside the impact of macro-changes in the wholesale fuel market on EG Fuel operations.
Additionally, grocery and merchandise gross profits of $293m (£233.9m) remained consistent with the prior year, increasing 0.8% from $290m (£231.5m).
Overall, growth in EG’s foodservice operations has been supported by the group’s pipeline of opening and investment in its existing estate, as 26 foodservice outlets were opened in the quarter, bringing the total number of outlets at the group level to over 1,800.
EG said that 21 of these foodservice outlets were opened in the UK&I, including Subway, Greggs, Cinnabon and Sbarro sites.
The group also recently announced plans to create over 32,000 jobs globally over a five-year period.
Zuber Issa CBE, co-founder and co-CEO, said: “The strong performance in foodservice was supported by UK acquisitions from 2021 that contributed $40m (£31.9m) of gross profit across the quarter, while the business continues to benefit from ongoing investment and the rollout of new sites, including our proprietary brands and partnerships.
“The outlook for the year remains uncertain with household budgets already coming under significant inflationary pressure. However, we remain confident that the geographic diversity of our business and our highly complementary grocery and merchandise, foodservice and fuel operations will continue to underpin our resilience.”
