EG Group reported increased profits for the third quarter, fuelled by robust growth in its grocery and merchandise sectors.
- Underlying EBITDA for EG Group witnessed an 8% rise reaching $300 million (£235.8 million).
- The grocery and merchandise division saw a notable 4% increase in gross profits, indicating strong market performance.
- Foodservice operations experienced similar growth, contributing significantly to the overall profit increase.
- The sale of remaining UK forecourt businesses marked a strategic step in EG Group’s financial planning.
For the three months ending 30 September, EG Group reported an 8% rise in underlying EBITDA, reaching $300 million (£235.8 million). This was largely driven by a strong performance in the grocery and merchandise division, where gross profit increased by 4% to $344 million (£270.4 million).
Furthermore, the company’s foodservice segment also experienced a 4% rise in gross profit, amounting to $117 million (£92 million). This consistent growth across divisions underscores EG Group’s robust business strategy and market adaptability.
A significant development for the group was the completion of the sale of its remaining UK forecourt business and certain standalone foodservice locations to Zuber Issa, co-founder of EG Group and former Asda co-owner, on 31 October. This move aligns with the group’s deleveraging strategy, aimed at reducing financial liabilities.
Mohsin Issa, co-founder and CEO of EG Group, commented on the progress of the deleveraging strategy, noting the disposal of UK forecourt business as a critical step. He emphasised that proceeds from this transaction, and other disposals, would be utilised to repay the bridging facility and senior debt, further strengthening the group’s financial standing.
Issa also highlighted various cash flow initiatives that facilitated the repayment of the revolving credit facility by the end of September, demonstrating the group’s commitment to a solid balance sheet and financial health. As a leading global convenience retailer, EG Group continues to leverage its diversified, cash-generative business model.
With differentiated customer propositions and partnerships with premium brands, EG Group is poised for continued success. The strengthened balance sheet equips the group to maintain resilience and competitiveness in a dynamic retail landscape.
EG Group’s strategic focus and operational strength have positioned it well for sustained growth in the competitive retail market.
