// EG Group sales rise in third quarter
// Profits fail to reach last year’s post-pandemic levels
// The quarter’s EBITDA was still the second highest recorded for the group
EG Group has recorded a rise in third quarter sales despite profits not reaching last year’s post-pandemic levels.
The company, which is owned by Asda’s new owners the Issa brothers, said EBITDA dropped 10.2 per cent to £428 million year-on-year when restrictions were lifted.
EG Group added that the quarter’s EBITDA was still the second highest recorded for the group.
READ MORE: Issa brothers to consider merging Asda and EG Group
Sales increased by 20.4 per cent and reached £7.2 billion in the three month period to September 30.
EG Group said its foodservice division has been the main driving factor for sales, with gross profit increasing by 46 per cent year-on-year and 36 per cent on a like-for-like basis.
During the period, EG Group expanded its food-to-go outlets including Greggs, KFC and Leon.
EG has also rolled out an Asda-on-the-Move proposition to its forecourts, and begun introducing foodservices within Asda stores.
“Against a record-breaking comparative period last year, this quarter’s results are in-line with expectations and further validate EG Group’s vision of delivering a modern and compelling retail experience, to support our global growth strategy,” Issa brothers said.
“The start of the Q4 period has been characterised by ongoing macro-uncertainty, with some of our international markets facing renewed lockdown restrictions.
“Nevertheless, our business has demonstrated its resilience during the pandemic period, with customers continuing to make essential journeys, holidaying at home more often and showing increasing demand for food delivery, convenient local shops, click-and-collect, delivery and food-to-go services.
“With the combination of our proprietary brands, Leon and Cooplands, and our strategic partnerships with some of the world’s most popular brands, we are well-placed to make further progress in the final quarter of the year.”
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