EG Group reports a significant profit increase in Q3, led by the grocery division.
- The company’s EBITDA sees an 8% rise, totalling $300m (£235.8m).
- Grocery and merchandise gross profits climb by 4% to $344m (£270.4m).
- Completion of UK forecourt sale aids debt repayment strategies.
- CEO Mohsin Issa highlights ongoing financial robustness and strategic growth.
EG Group has announced a remarkable profit surge in the third quarter, thanks largely to the strong performance of its grocery and merchandise division. For the period ending 30 September, the company reported an 8% increase in its underlying EBITDA, reaching $300m (£235.8m). Simultaneously, the gross profits from grocery and merchandise rose by 4% to $344m (£270.4m).
The company’s foodservice division also experienced a 4% increase in gross profit, amounting to $117m (£92m) for the quarter. This financial upturn coincides with the completion of a pivotal transaction on 31 October, where EG Group sold its remaining UK forecourt business, alongside selected foodservice locations, to co-founder and former Asda co-owner Zuber Issa.
This sale has been instrumental in the group’s efforts to streamline its operations and strengthen its financial position. According to Mohsin Issa, the co-founder and CEO, the proceeds from these transactions have been used efficiently to repay existing debt obligations, including the full repayment of a bridging facility by November 2024. The remaining proceeds will contribute to settling senior debt.
The strategic disposal of non-core assets is part of EG Group’s broader deleveraging strategy, which is vital to enhancing its balance sheet strength. Moreover, cash flow initiatives have enabled the company to clear its revolving credit facility by the end of September 2024. This reflects the company’s commitment to sustaining a robust financial framework.
Looking forward, Mohsin Issa expressed confidence in EG Group’s financial trajectory, underscoring its ability to leverage its diversified and cash-generative business model. He emphasized the significance of EG Group’s customer proposition, bolstered by strong brand partnerships and proprietary brand offerings, to maintain a competitive edge in the global convenience retail market.
EG Group remains on a promising financial path bolstered by strategic decisions and robust operational performance.
