EG Group reports significant profit growth in the third quarter.
- EBITDA seeing an 8% increase, reaching £235.8 million.
- Grocery and merchandise gross profit brings in £270.4 million.
- UK forecourt business sale strengthens financial position.
- Commitment to debt repayment and financial robustness continues.
EG Group has announced a noteworthy rise in profits for the third quarter, spurred by a robust performance in its grocery and merchandise division. This segment has played a pivotal role in the overall financial performance, highlighting the company’s strategic focus on core business strengths.
For the three months leading up to 30 September, EG Group’s underlying EBITDA experienced an 8% boost, amounting to $300 million (£235.8 million). The grocery and merchandise segments have contributed significantly, with gross profits climbing 4% to $344 million (£270.4 million). This indicates a steady demand and efficient management within these sectors.
In addition to the grocery and merchandise success, EG Group’s foodservice operations saw a 4% rise in gross profit, totalling $117 million (£92 million) for the quarter. This diversification across different streams of revenue continues to underpin the company’s financial resilience.
As of 31 October, the group finalised the sale of the remaining UK forecourt business, along with select standalone foodservice locations, to Zuber Issa, co-founder of EG Group. This move is aligned with the company’s strategy to streamline operations and focus on its core competencies.
CEO Mohsin Issa remarked, “The group made progress with its deleveraging strategy, with the disposal of the remaining UK forecourt business to Zuber completing at the end of October.” This transaction facilitated the repayment of the bridging facility in November 2024, reinforcing EG Group’s commitment to reducing its debt burden.
EG Group continues to pursue a strategy of strengthening its balance sheet, supported by cash flow initiatives that enabled the repayment of the revolving credit facility by the end of September 2024. The group’s forward-looking approach is evident in its vision to maintain robust financial health and sector leadership.
Looking ahead, EG Group remains optimistic about maintaining its strong financial performance, leveraging its diversified business model and strategic partnerships. The company recognises the importance of scale and resilience in securing success in the competitive retail landscape.
EG Group’s strategic initiatives and strong sectoral performance underpin its robust financial results and ongoing success.
