// EG Group posts “strong performance” in its third quarter thanks to a recovery after lockdowns
// For the three months to September 30, the group recorded a 54% like-for-like rise in its EBITDA
// EG Group, owned by billionaire brothers Zuber and Mohsin Issa, acquired Asda for £6.8bn
Asda’s new owner EG Group has recorded a “strong performance” in its grocery and merchandise sales, with growth across most markets in its third quarter.
For the three months to September 30, the group recorded a 54 per cent like-for-like rise in its EBITDA.
Meanwhile, its food service business recorded a “strong recovery” following Covid-19 lockdowns in the second quarter.
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The petrol station empire, which is owned by billionaire brothers Zuber and Mohsin Issa, posted positive year-on-year Grocery and Merchandise sales across most markets, including UK and Ireland, Germany, Benelux and Australia.
However, it recorded a larger negative impact in France, which reflects a high proportion of highway sites and sites in the south of the country, given reduced highway travel and tourism.
All food service sites are now operational, with sales in UK and Ireland and Benelux returning to year-on-year growth by end of the third quarter.
Group EBITDA increased by 90 per cent, reaching $478 million (£364 million) compared to the same period last year, and increased by 54 per cent on a like-for-like basis.
In the nine months to September 30, EBITDA increased by 64 per cent on a like-for-like basis, compared with a 17 per cent increase during the same period last year.
Grocery and Merchandise gross profit increased by 45 per cent, and four per cent on a like-for-like basis compared with the same period last year.
Meanwhile, its food service gross profit increased by 79 per cent on a reported basis, and 12 per cent on a like-for-like basis.
Following its auditor of four years, Deloitte’s sudden exit on Thursday, EG Group said it is “pleased to have commenced working with KPMG” as a replacement.
However, EG Group retains a relationship with Deloitte, which will continue to serve as auditor for its Australian business.
“To deliver such a strong performance in the third quarter, resulting in a record quarter of profitability for the group, is testament to the resilience and differentiation of our best-in-class, diversified business model,” Mohsin Issa said.
“We are grateful to the thousands of our front-line colleagues who continue to provide an essential service to millions of customers in our global communities, including to thousands of healthcare workers and first-line responders.
“Looking ahead, while the impact of tightening lockdown restrictions in a number of markets is yet to be fully seen, EG Group is strongly positioned to weather these external challenges and continue driving long-term growth across our global business.”
Since EG Group was founded in 2001 by the Issa family in the UK, it has increased to 6000 sites and operates in 10 international markets.
EG Group has grown through store roll-outs and acquisitions and now employs more than 44,000 colleagues.