Higher takeaway demand helps EG Group make profit in Q1
Zuber (left) and Mohsin Issa.
PETROL forecourts company EG Group clocked profit in the January-March quarter from its foodservice business, following a rise in demand for takeaways during the coronavirus pandemic and subsequent lockdown.
Profits from its foodservice business helped in offsetting decline in fuel as Britain was locked down during the first quarter of the year.
In the quarter ended March 31, EG Group, owned by millionaire brothers Zuber and Mohsin Issa, reported a 5.8 per cent increase in group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to £186.9 million.
The foodservice business of the EG Group was the main driver of growth during the pandemic period and reported a gross profit of £76.9 million, up from £31.7 million a year ago.
Group revenues for the quarter dropped 7.1 per cent to £3.7 billion, as fuel sales were affected by coronavirus restrictions curbing travel.
EG Group’s grocery and merchandise gross profits also fell during the period, down 3.2 per cent to £207.4 million.
Last year, the Issa brothers and TDR Capital agreed on a £6.8 billion deal to buy supermarket chain Asda from its US parent company Walmart.
EG Group also said it expected to complete the £750 million acquisition of the Asda forecourt business in the second half of the year.
The brothers have built their EG Group petrol into one of Britain’s largest private companies after joining forces with TDR Capital, the private equity firm.
More recently, the Issa brothers bought Leon, the fast-food chain, for £100 million last month.