The EG Group delivered 'a solid trading performance' in the three months to June 30, its co-chief executive Zuber Issa has said.

He was speaking after the business, run by the Blackburn billionaire Issa brothers, published its Quarter Two trading results.

They showed the business, founded by Zuber and his brother an co-chief executive Mohsin, recorded a gross profit before tax, interest and other deductions of £267.6 million, on revenues of £5.86 billion.

On an underlying basis, the Group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 10 per cent, reflecting growth in food service and convenience retail.

The impact of oil inventory revaluations, driven by oil price volatility across both Quarter Two 2023 and the previous comparable quarter in 2022, led to a four per cent decline in Group EBITDA on a reported basis.

The firm has continued to pay off long-term borrowing.

Zuber Issa said: "EG Group delivered a solid trading performance in the second quarter, which continued to be in line with expectations.

"Underlying EBITDA increased by 10 per cent in the quarter – and particularly pleasing was the performance of foodservice, where gross profits increased by 18 per cent.

"This was driven by an increase in sales, reflecting the positive impact of investment in new sites to bring the Group’s leading proposition to more customers.

“The Group continued to make good progress with its deleveraging strategy in Q2 – including announcing the sale of its UK & Ireland operations to Asda, concluding a £1.12 billion sale and leaseback of 415 sites in the US, and a successfully Amend and Extend of its term loans – to put in place a sustainable long-term capital structure.

"In the near term, the Group remains committed to achieving a net leverage multiple of mid-four times and addressing its remaining near-term maturities no later than 12 to 15 months before maturity.

“There are multiple opportunities to grow the business organically in all our operating regions, and the continued roll out of our proven convenience retail, foodservice and fuel offering – alongside our geographic diversification and scale, and the evolution to alternative fuels – provides an unrivalled platform for further success.

"I am confident that our strategy will continue to deliver for all our stakeholders, and I would like to reiterate my thanks to all EG colleagues for their hard work and dedication.”