Petrol station operator EG Group said its profits fell at the start of the year due to adverse weather conditions in the US and reduced fuel availability in Germany.
The business’s underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) dropped 4% to $156m in the three months to 31 March, as strong performances in France and Italy were offset by issues elsewhere.
Fuel volumes fell 2.9% due to the problems in the US and Germany, plus reduced demand in Australia.
In the UK, foodservice sales grew 3% driven by the group’s Starbucks stores, however overall the group’s foodservice gross profits sunk 1.4%, with growth in Europe offset by a fall in America.
“Across the group, we delivered a mixed performance in Q1, impacted by adverse weather conditions in the US and major calendar events,” said new CEO Russ Colaco, who took over in April after Mohsin Issa stepped down.
The poor weather in the US meant a decline in footfall and hence sales of grocery and general merchandise, the company said, triggering a 12% fall in underlying EBITDA.
The US is the largest market for EG Group, where it holds over 1,400 sites. It recently entered into a leasehold agreement for nine “newer, large format” properties in the north east of the country.
In Europe, France and Italy helped drive a 2.3% rise in EBITDA with site numbers also growing in the period thanks to an expansion of EG’s dealer network in Italy.
EG Group announced it has appointed a new chief legal officer, Erik Chalut, and a new executive vice president of corporate finance, Steve Briggs.
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