High UK fuel prices helped profits rise at the retail empire run by the billionaire owners of Asda, according to new figures.
EG Group, which is headquartered in Blackburn, was set up by brothers Zuber and Mohsin Issa in 2001 and now counts the likes of Euro Garages, LEON and Cooplands among its brands.
Newly-released figures for the group's three months to September 30, 2022, show its total revenue increased to £8bn from the $7.1bn it reported during the same period in 2021.
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The group's EBITDA also increased from $428m to $437m, with fuel gross profits rising from $511m to $594m and foodservice gross profit going from $171m to $179m.
Grocery and merchandise gross profit dipped from $370m to £365m over the same period.
In the year to date, the group's revenue is up almost 20% but its EBITDA is down by 1%.
Zuber Issa said: "We are pleased with the third-quarter performance, which again proves the resilience of the group against the prevalent global uncertainty.
"During this period, the benefit of our geographic diversification was demonstrated as the performance of the US and Australian businesses offset the weaker UK trading, with significant cost headwinds in energy, labour and logistics costs that also impacted our other markets.
"Despite these 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 and finally, strengthening our convenience store proposition with the ongoing rollout of Asda 'On the Move' across our UK forecourt network.
"The publication of our first ESG report in October was a milestone moment for the company, setting out our net zero ambitions and our energy transition plans to lower-carbon fuels.
"We have been hugely encouraged by the initial trial of our ultra-fast chargers and infrastructure, evpoint.
"Our disciplined rollout will see ultra-fast charging being made available at a further 20 EG sites by the end of this year and we are exploring a range of options to further accelerate this proposition.
"We are already seeing the benefits of combining EV charging infrastructure with our multi-service sites, which allow consumers to enjoy a meal or a cup of coffee, or shop for groceries while they wait for their car to charge.
"The continued hard work of our colleagues was critical in the last quarter, and we remain committed to supporting them, our customers and our communities during these challenging times.
"Looking ahead, we remain cautious about the macro-economic outlook, but are confident that we have a highly resilient business, which is well-placed to outperform the wider market.
"Finally, I would like to congratulate Imraan Patel on his recent promotion to chief strategy and business officer, building on his original appointment as group general counsel and company secretary in 2016, and welcome Michael Bradley as our newly appointed group CFO.
"Along with the rest of our senior leadership team, I believe the group has the necessary strategic leadership expertise and depth of operational experience to ensure we successfully traverse the economic challenges facing everybody."
An EG Group spokesperson added: "We operate in a highly competitive and price sensitive market, which was investigated by the CMA.
"We are committed to offering fair fuel prices to consumers, with our pricing in each location reflecting local market competition. In the UK market we are facing unprecedented cost headwinds, with our costs up more than 20% in the year to date, which has led to a decline in our overall UK profitability. Of note, our retail fuel prices declined quarter on quarter.
"Furthermore, about 80% of EG’s UK profit comes from a strong non-fuel retail proposition in foodservice – along with its grocery and merchandise business on its forecourts – therefore fuel retail’s contribution is relatively small and not the notable profit driver in the market or for the overall performance of the group."
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