City Snapshot: EG Group Revenues Rise But Profits Hit by Inflationary Pressures | New

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Forecourt giant EG Group reported “resilient” second quarter trade, with sales rebounding 34%, although inflationary pressures reduced overall profits.

For the three months to the end of June, overall revenue rose 33.5% in constant currency year-over-year to just under $9 billion.

The group’s EBITDA for the second did not progress with turnover, this figure increasing by 0.2% at constant exchange rates.

On a reported basis, Group EBITDA decreased by 6.5% to US$355m, partly due to unfavorable exchange rate movements, but also the impact of inflationary pressures and cost of living on customer behavior.

At the divisional level, the restaurant business saw its gross profit increase by 11% to US$177m, thanks to its acquisitions and openings in continental Europe, the United Kingdom and Ireland. It opened 33 outlets during the quarter, bringing its total to 1,889.

Grocery and merchandise gross profit was flat at $346 million, despite the impact of inflation on retail prices.

Fuel margins remained stable, with the EG Group warning of continued volatility in wholesale fuel costs due to the “current dislocation in energy markets due to geopolitical events”.

Zuber Issa said: “Despite a backdrop of challenging market conditions, we continued to perform resiliently in the second quarter of the year, supported by our geographically diverse portfolio and complementary restaurant, grocery and merchandise businesses. , and fuel.

“Cost of living compression remains a major concern for all of us, and the group is focused on supporting our employees and helping customers with value for money at this time. EG’s strong performance over the The quarter demonstrated our ability to adapt, and although the economic outlook remains uncertain, we look forward to the second half of the year, confident in our ability to outperform the broader market.

“In addition to acting as a responsible global convenience retailer, we recognize our role in contributing to a more sustainable future. We are excited to test our own-brand super-fast electric vehicle chargers in the UK and plan to introduce them to other locations by the end of this year.

“This investment complements our existing network of approximately 250 electric charging stations across 98 locations in the UK, Ireland, Germany and France. We also continue to explore the delivery of other low carbon fuels alongside our planned rollout of electric vehicles.

Meanwhile, the band has announced that Michael Bradley has been appointed as the group’s chief financial officer, replacing Paul Altschwager who is stepping down to leave the band in July 2023.

Bradley joins High Spped Two, where he has served as Chief Financial Officer since 2018.

morning update

Starbucks announced last night that Laxman Narasimhan would become the company’s next CEO following the announcement of his shock departure from Reckitt Benckiser yesterday morning.

Narasimhan will join Starbucks as incoming CEO on October 1 after relocating from London to the Seattle area and will work closely with interim CEO Howard Schultz before assuming the role of CEO and joining the board. on April 1, 2023.

Starbucks said Narasimhan brings nearly 30 years of experience leading and advising global consumer brands.

He said: “Known for his considerable operational expertise, he has a proven track record in developing purpose-driven brands. Drawing on the companies’ history, he successfully rallied talent to realize future ambitions by driving consumer-centric and digital innovations. »

Most recently, he served as Managing Director of Reckitt, a FTSE-12 listed multinational consumer health, hygiene and nutrition company, where he led the business through a major strategic transformation and comeback. to sustainable growth.

Mellody Hobson, Independent Chairman of the Board of Starbucks, said, “Laxman is an inspiring leader. His deep, hands-on experience driving strategic transformations in global consumer-facing businesses makes him the ideal choice to accelerate Starbucks’ growth and seize the opportunities that lie ahead.

“His understanding of our culture and values, coupled with his expertise as a brand builder, innovation champion and operational leader will be true differentiators as we position Starbucks for the next 50 years, driving value for all our stakeholders. On behalf of the entire Board of Directors, I am delighted to welcome Laxman as the next CEO of Starbucks. »

During the transition period, Narasimhan will spend time with Schultz and the leadership team, partners and customers and gain in-depth exposure to the brand, corporate culture and reinvention plan.

This will initially include immersions in Starbucks stores, visiting manufacturing plants and coffee farms, connecting with partners around the world as well as long-term Starbucks business partners.

Schultz will remain in the interim CEO role during this transition period, after which he will continue as a member of the Starbucks Board of Directors. He will remain closely involved in the company’s reinvention and act as a permanent adviser to Narasimhan.

Schultz added, “”When I learned of Laxman’s desire to move, it became clear that he was the right leader to take Starbucks into its next chapter. He is uniquely positioned to shape this work and drive the business forward with his partner-centric approach and proven track record of building capacity and driving growth in both mature and emerging markets.

“As I have had the opportunity to know him, it has become clear that he shares our passion for investing in humanity and our commitment to our partners, customers and communities. The insights he brings will be a major asset as we build on our legacy in this new era of greater wellbeing.I look forward to our partnership in the months and years to come.

Narasimhan commented, “Starbucks’ commitment to uplifting humanity through connection and compassion has long distinguished the company, creating an unrivaled and admired brand around the world that has transformed the way we connect around the world. ‘A coffee. I am honored to join this iconic company at such a pivotal time, as reinventing and investing in partner and customer experiences positions us to meet the changing demands we face today and prepares us for an even brighter future. strong.

“I look forward to working closely with Howard, the Board of Directors and the entire leadership team – and to listening and learning from Starbucks partners – as we collectively build on this work to lead the company towards its next chapter of growth and impact.

Elsewhere, AIM-listed Love Hemp Group, the CBD consumer products group, has announced that Tesco is now stocking Love Hemp CBD products.

Tesco will initially stock a range of six Love Hemp products in over 200 Tesco stores, including ‘Tesco Extra’ in the UK. Tesco Extra stores are larger hypermarkets, mostly located outside the city, which stock almost all of Tesco’s product ranges, although some are in the heart of town centers and town centres.

The Love Hemp products available include CBD oil drops, sprays, chocolate balls and a new sugar-free and gluten-free plant-based CBD gummy.

The company plans to launch its latest product line in the fourth quarter, available in various delivery forms such as capsules and edibles through direct-to-consumer sales, marketplaces and other major retailers.

Tony Calamita, CEO of Love Hemp, said: “I am delighted that Tesco has chosen to stock Love Hemp products. Tesco is a big British name and we are very proud to work with them. Our mission has always been to make CBD accessible and available to as many consumers as possible, and having our products stocked in Tesco’s vitamin aisles brings great visibility to our products and our brand.

“We expect Tesco to be the first of several new launches across major UK retailers since the publication of the Novel Foods Register on March 31.”

In the markets this morning, the FTSE 100 rebounded 0.5% from losses this week to 7,185.4 pts.

Risers include Devro, up 5.5% at 194.8p, ​​McBride, up 4.8% at 23.9p and Nichols, up 2.8% at 1,084.2p.

Fallers include Kerry Group, down 2.2% to €99.08, Naked Wines, down 1.4% to 118.4p and British American Tobacco, down 1.1% to 3,408p.

Yesterday in the city

The FTSE 100 fell another 1.9% yesterday to 7,148.5 to extend its string of significant declines to four days.

Consumer goods giant Reckitt Benckiser lost 5.2% in its share price to 6,304p on the departure of CEO Laxman Narasimhan, and it later confirmed it was joining Starbucks.

Other slaughterers have included numerical names, such as Naked Wines. Down 10.2% to 120.1p, Ocado down 5.8% to 684.2p, Deliveroo down $5.6 to 76.4p, Just Eat down 5 .5% to 1,363.8p and THG, down 4.7% to 52.4p.

Other fallers included Nichols, down 5% at 1055p, Parsley Box, down 4.9% at 9.75p, SSP Group, down 4.7% at 201.8p, C&C Group, in down 4.7% to 164p, Domino’s Pizza Group, down 4% to 226.6p and FeverTree, down 3.8% to 880p.

The few risers on the day included Bakkavor, up 3.1% to 82.4p, Virgin Wines, up 1.8% to 57p, Kerry Group, up 1.6% to €101.29 and McBride, up 1.3% to 22.8p.

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