High fuel prices and continued expansion were both factors in the Issa Brothers-owned EG Group hitting a record $26billion income by the end of September.
That sum only covered only the period from the start of 2022 until September 30 and represented a huge 38.5% increase from the previous year. Meanwhile, the quarter running July-September alone saw income of $8.3bn which is 16% more than the same period in 2021.
The figures were shared in the latest company update from the EG Group, which started out at a single forecourt and has grown into a huge international company. According to its latest financial report, strong revenue in the USA and Australia helped to compensate for weaker performance in the UK.
Here, higher fuel prices contributed to the increased revenue while it has also continued its rollout of Asda 'On the Move' convenience stores. Some 65 of those have been opened in the last quarter alongside the introduction of outlets such as its own LEON and Cooplands brands.
But the EG Group has moved to distance itself from profiting during the energy crisis gripping the UK and Europe, saying that 'actual retail fuel prices declined quarter on quarter' despite what the year on year figures indicate.
Zuber Issa, CBE co-founder and co-CEO of EG Group, commented: “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 & 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.”
On fuel profits, 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.”