EG Group has announced a significant increase in its quarterly profits, primarily driven by its grocery division.
- In the third quarter of 2024, EG Group’s underlying EBITDA rose by 8% to $300 million.
- The grocery and merchandise sectors reported a 4% rise in gross profit, reaching $344 million.
- The group’s improved performance was supported by better margins in the U.S., especially in beverages.
- EG Group also completed the sale of its remaining UK forecourt business, aiding its deleveraging strategy.
EG Group has reported strong financial results for the third quarter of 2024, highlighting an 8% increase in underlying EBITDA to $300 million. This growth is largely attributed to the robust performance of the grocery division, which recorded a 4% rise in gross profits to $344 million. The improvement in the grocery sector was primarily driven by enhanced gross margins. Notably, initiatives in dispensed beverages in the United States played a crucial role in counterbalancing challenging economic conditions within the industry.
In addition to the grocery sector’s success, the group’s foodservice gross profit increased by 4%, reaching $117 million for the quarter. This growth in foodservice, along with a 3% rise in fuel volumes at a group level, contributed to the overall increase in gross profit. These factors combined with stable margins have been instrumental for EG Group’s financial success as noted by the forecourt operator.
On October 31, 2024, EG Group completed the sale of its remaining UK forecourt business and several standalone foodservice sites to Zuber Issa, the former co-owner of Asda and co-founder of EG Group. CEO Mohsin Issa highlighted the completion of this transaction as a step forward in the company’s deleveraging strategy. The proceeds from the sale, along with those from other non-core asset disposals, were used to fully repay a bridging facility in November 2024. Moreover, the company aims to continue reducing senior debt with the remaining funds.
Mohsin Issa was optimistic about the future, stating that EG Group plans to maintain its strong financial performance through its diverse and cash-generating business model. The company’s position as a leading global convenience retailer is reinforced by its partnerships with well-known brands and proprietary offerings. With a strengthened balance sheet, EG Group is well-prepared to succeed in an industry where size and resilience are key factors.
EG Group’s strong quarterly performance underscores its strategic capabilities and forward-thinking approach in the competitive retail industry.
