EG Group’s financial results for the third quarter reveal a significant boost in profits, attributed to a robust performance in its grocery sector.
In the three months leading up to 30 September 2024, EG Group experienced an 8% increase in underlying EBITDA, reaching $300 million (£235.8 million). This financial uplift was primarily driven by a 4% rise in gross profit from grocery and merchandise, culminating at $344 million (£270.4 million). The group’s strong grocery performance is largely credited to enhanced gross margins, with particular emphasis on dispensed beverage strategies in the United States that helped counter broader economic challenges facing the industry.
Simultaneously, the group’s foodservice sector saw a 4% rise in gross profit, totalling $117 million (£92 million) for the quarter. Fuel volumes also increased by 3% across the group, contributing to overall gross profit growth alongside stable margins.
Significantly, on 31 October, the company finalised the sale of its remaining UK forecourt operations and certain standalone foodservice locations to Zuber Issa, former Asda co-owner and EG Group co-founder. CEO Mohsin Issa highlighted the progress in deleveraging strategy, noting that proceeds from these and other non-core asset sales were utilised to fully repay a bridging facility in November 2024, with additional funds directed towards senior debt repayment. It was also noted that various cash flow measures enabled the repayment of a revolving credit facility by the end of September 2024. The group remains focused on strengthening its financial standing through the ongoing implementation of its deleveraging plan.
Looking forward, Issa stated that EG Group aims to sustain its financial momentum through a diversified business model that is both cash generative and flexible. The company, identified as a leading global independent convenience retailer, leverages a unique customer offering supported by well-established premium brand partnerships and in-house brand products. With an enhanced financial foundation, the group is well-positioned to excel in an industry where scale and resilience are crucial.
EG Group’s recent financial results underscore its effective strategies in navigating economic challenges and positioning itself for future success with a strong balance sheet and a diversified business approach.
