EG Group reports strong foodservice ops performance for Q2

Roadside retail convenience company, EG Group has reported a trading update for the second quarter of 2021, representing the three months and half year results to 30 June 2021.

Q2 performance highlights
> Group EBITDA for Q2 2021 increased by 23.7% to $380m on a reported basis year-on-year, and 23.4% on a like-for-like basis, reflecting a strong performance against the prior year, which was significantly impacted by COVID-19 lockdown restrictions and temporary foodservice closures in the UK.

> Strong performance in Foodservice operations, with Q2 2021 gross profit growing by 231% year-on-year and 219% on a like-for-like basis, supported by continued customer demand for 'to-go' and 'delivery' services and reflecting an extraordinary year-on-year performance uplift due to the significant impact of Covid-19 restrictions in the same period last year.

> Continued resilience in Grocery & Merchandise, with Q2 2021 gross profits increasing 24% year-on-year reflecting increased footfall with lockdown restrictions having been relaxed in many of the Group’s operating countries.

> Transition plans underway to facilitate completion of the Asda forecourts business
Completion of the acquisition of Leon Restaurants and strong progress made on the integration into the Group with a pleasing performance in Q2 2021 and plans to open a further c.10 Leon restaurants in 2021.

Zuber Issa CBE and Mohsin Issa CBE, co-founders and co-CEOs of EG Group, said, “We continued to make good progress in the second quarter, with a particularly strong performance from our Foodservice business, driven by growth in customer demand for take away and delivery services and the easing of COVID restrictions across many of our countries.

“We are also pleased to have completed the acquisition of Leon Restaurants and look forward to expanding its offering with c.10 new restaurant openings planned this year, including the brand’s first ever Drive-Thru.

'The Group’s latest performance is further validation of our successful global strategy. The resilience of our business model has been demonstrated during the pandemic, and we have emerged as an even stronger business as we enter the second half of the year with confidence.”