EG Group has reported a significant rise in profits for the third quarter, highlighting a robust performance in its grocery division.
In the three months ending 30 September 2024, EG Group experienced an 8% increase in underlying EBITDA to $300 million (£235.8 million). This growth was largely attributed to a 4% rise in grocery and merchandise gross profit, which totalled $344 million (£270.4 million).
The company revealed that its grocery segment’s success was primarily due to improved gross margins. Additionally, initiatives in the dispensed beverage sector within the United States helped mitigate broader challenging economic conditions affecting the market.
Meanwhile, the foodservice sector also showed positive results, with gross profit climbing by 4% to reach $117 million (£92 million) for the quarter. Fuel volumes at a group level saw a 3% increase, and when combined with stable margins, this contributed to the overall gross profit enhancement.
On 31 October, EG Group completed the sale of its remaining UK forecourt business and selected standalone foodservice locations to Zuber Issa, former co-owner of Asda and a co-founder of EG Group. Mohsin Issa, co-founder and CEO of EG Group, stated, ‘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.’
Utilising the proceeds from this transaction and other asset sales, the group fully repaid its bridging facility in November 2024. The remaining funds are earmarked for repaying senior debt. Initiatives focusing on cash flow also enabled the group to repay its revolving credit facility by the end of September 2024.
Looking forward, Issa emphasised the group’s commitment to maintaining its strong financial position through a diversified and cash-generative business model. He noted the group’s unique customer proposition, supported by premium brand partnerships and proprietary offerings, as a key strength.
As EG Group fortifies its balance sheet, it is well-positioned to leverage its scale and resilient operations in a market where size is highly advantageous.
EG Group’s strategic efforts to enhance profitability and strengthen its balance sheet appear promising for sustaining its market leadership.
