EG Group’s profit increased significantly in the third quarter of 2024, primarily due to the strong performance of its grocery division.
- The group reported an 8% rise in underlying EBITDA, reaching $300 million (£235.8 million), reflecting efficient operations.
- Grocery and merchandise gross profit grew by 4% to $344 million (£270.4 million), driven by enhanced margins.
- Foodservice also saw a 4% gross profit increase, amounting to $117 million (£92 million).
- The sale of UK forecourt assets enabled the group to pay off key financial commitments, strengthening its balance sheet.
EG Group has reported a notable increase in its profits for the third quarter, ending 30 September 2024, with a substantial boost from its grocery operations. Underlying EBITDA rose by 8%, reaching $300 million (£235.8 million), indicative of the group’s effective management and targeted strategies.
The grocery and merchandise segment contributed significantly to this financial outcome, with gross profits climbing by 4% to $344 million (£270.4 million). This improvement was largely driven by better gross margins, and in the United States, initiatives around dispensed beverages played a crucial role in counterbalancing challenging economic conditions.
The foodservice division also reported positive results, with a 4% increase in gross profit, achieving $117 million (£92 million) during the quarter. This suggests that the group’s diversified interests are yielding stable returns despite fluctuating market dynamics.
Additionally, fuel volumes grew by 3% at the group level, contributing to an overall improvement in gross profit through stable margins, underscoring the forecourt operator’s resilient business model.
In an important strategic move, EG Group completed the sale of its remaining UK forecourt business and some standalone foodservice sites to Zuber Issa, a significant shareholder. This transaction has not only supported the group’s deleveraging strategy but also facilitated the complete repayment of its bridging facility and repayment of senior debt using the remaining proceeds.
EG Group’s CEO, Mohsin Issa, expressed commitment to continued financial success through a robust and diversified business model. He highlighted that the recent financial manoeuvres have set a strong foundation for the group’s future growth, leveraging its scale and strategic partnerships to thrive in a competitive market.
The strategic decisions and effective operations have positioned EG Group to sustain its financial momentum amidst industry challenges.
