EG Group reported a notable increase in profits this quarter, reflecting strong performance in key divisions.
- Underlying EBITDA for the third quarter rose 8% to $300 million.
- The grocery and merchandise sectors saw a gross profit increase of 4%, reaching $344 million.
- The group successfully sold its remaining UK forecourt business and repaid significant debts.
- CEO Mohsin Issa highlighted the company’s strategic focus on deleveraging and maintaining a strong balance sheet.
EG Group’s financial results for the third quarter demonstrated a robust growth trajectory, attributed largely to its grocery and merchandise divisions. The company’s underlying EBITDA improved by 8%, equating to $300 million (£235.8 million). This upturn is largely due to a 4% increase in the grocery and merchandise gross profit, which climbed to $344 million (£270.4 million).
Furthermore, the operator observed a 4% rise in foodservice gross profits, amounting to $117 million (£92 million). Such consistent growth in these sectors underlines the company’s effective business strategies and market positioning.
Significantly, on 31 October, EG Group completed the sale of its remaining UK forecourt operations to co-founder Zuber Issa. This strategic divestment was a pivotal step in the company’s broader strategy to deleverage its finances. Proceeds from this sale were channelled towards fully repaying the existing bridging facility in November 2024, with excess funds earmarked for senior debt reduction.
CEO Mohsin Issa expressed confidence in the group’s ability to enhance its financial standing. ‘The group made progress with its deleveraging strategy,’ he stated. By repaying the revolving credit facility and focusing on its core operations, EG Group aims to maintain its position as a leading independent convenience retailer globally.
Looking forward, EG Group is poised to continue its momentum through a diversified, cash-generating business model. Its strong ties with premium brands and proprietary offerings provide a competitive edge critical for success in a size-sensitive industry.
EG Group is strategically positioned for sustained success through its prudent financial strategies and strong market operations.
