EG Group’s quarterly profits increased due to a strong performance in their grocery division.
- The company’s underlying EBITDA rose by 8% in the third quarter, reaching $300 million.
- Grocery and merchandise gross profit saw a rise of 4%, amounting to $344 million.
- EG Group also experienced a 4% increase in foodservice gross profit, totalling $117 million.
- Key financial strategies included the sale of UK forecourt business, aiding debt repayment.
EG Group’s recent financial results highlight a significant increase in profitability, driven by its grocery and merchandise divisions. For the three months ending 30 September, the company’s underlying EBITDA grew by 8%, reaching a total of $300 million, equivalent to £235.8 million. This growth can be largely attributed to a 4% increase in gross profit from its grocery and merchandise sectors, which rose to $344 million or £270.4 million.
The company’s foodservice operations also contributed positively, with a 4% increase in gross profit for the quarter. This sector earned $117 million, equivalent to £92 million. These figures underscore the company’s effective execution of its diversified business model, which generates consistent cash flow and supports its robust financial performance.
On 31 October, EG Group finalised the sale of its remaining UK forecourt business, along with certain standalone foodservice locations, to Zuber Issa, co-founder and former Asda co-owner. According to co-founder and CEO Mohsin Issa, this move is part of the group’s deleveraging strategy. The proceeds from this transaction, along with other non-core asset sales, enabled the group to fully repay a bridging facility in November 2024. The remaining funds are earmarked for senior debt repayment.
Additionally, cash flow initiatives facilitated the settlement of the revolving credit facility by the end of September 2024. Mr. Issa expressed confidence in the company’s ability to maintain its strong financial performance through its diversified, cash-generative business approach. He emphasised that EG Group’s partnerships with premium brands and proprietary offerings give it a competitive edge in the global convenience retail market.
Looking forward, Mr. Issa pointed out that with a strengthened balance sheet, EG Group is now better positioned to succeed in an industry where scale is crucial. He noted that the company’s comprehensive customer proposition and resilient operations are key factors in its ability to thrive amidst challenges.
The strategic moves and strong sector performance underline EG Group’s sustained financial health and preparedness for future success.
