EG Group reports a significant rise in profits thanks to its grocery division.
- Profits for the third quarter saw an 8% increase in EBITDA, reaching $300 million.
- Grocery and merchandise divisions led the growth with a 4% gross profit increase, totaling $344 million.
- The foodservice sector also improved, achieving a 4% gross profit rise to $117 million.
- The sale of UK forecourt assets to co-founder Zuber Issa aided in debt reduction.
EG Group has announced a promising increase in its profits, largely attributed to the success of its grocery and merchandise division. The company’s EBITDA for the third quarter saw an 8% increase, reaching $300 million. Key drivers behind this growth include a 4% increase in gross profit within its grocery and merchandise sectors, amounting to $344 million.
The forecourt operator expanded its profitability in the foodservice sector as well, reporting a 4% rise in gross profits, totaling $117 million for the quarter. This reflects the company’s robust operational strategy and effective management of market demands.
A pivotal move in EG Group’s strategy was the sale of its remaining UK forecourt business and specific foodservice locations to its co-founder, Zuber Issa. This transaction, completed by the end of October, was part of a broader deleveraging strategy aimed at improving the company’s financial stability. Proceeds from this sale were used to repay significant portions of debt, including the full repayment of a bridging facility by November 2024.
Chief Executive Mohsin Issa emphasized the group’s commitment to strengthening its financial framework. The proceeds from asset dispositions enabled the repayment of their revolving credit facility by the end of September 2024. He noted the importance of cash flow initiatives in achieving these financial milestones.
Looking to the future, Issa is optimistic about continuing strong financial performance through EG Group’s diverse and cash-generative business model. He highlighted the value of the group’s differentiated customer proposition, which is underpinned by well-known premium brand partnerships and proprietary offerings. With a strengthened balance sheet, EG Group is positioned to capitalize on its scale, which is crucial in a highly competitive industry.
EG Group is poised for continued success, leveraging its diverse assets and strategies to maintain robust financial health.
