EG Group reveal 'strong' financial results for end of 2024

EG Group has announced a 'strong trading and operating performance' in 2024, alongside 'significant growth' in both the US and European divisions in its annual results.

 The group, founded by billionaire Blackburn brothers Mohsin and Zuber Issa, said its underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by nine per cent to £782.7m.

 The company has also made progress in reducing its debt through 'non-core divestments' and 'working capital initiatives.'

  The results came in the year when Zuber Issa stepped down as co-chief executive and bought food-service locations and the firm's remaining forecourt businesses in a £228m deal.

 Mohsin Issa, now sole chief executive of EG Group, said: "2024 was another successful year for EG Group.

 "We grew full-year EBITDA by nine per cent on an underlying basis, with notable contributions from our USA and European businesses.

 "This excellent performance is a testament to the efforts and commitment of our 38,000 colleagues who continue to deliver great customer service across our grocery and merchandise, food-service and fuel propositions each day, as well as our financial and operational delivery.

 “We made significant progress with further reducing the quantum and price of our debt – bolstered by non-core divestments and the repricing of our EUR and USD term loans – and we are committed to further deleveraging in a disciplined manner.

 "The actions we took last year have positioned us for further growth and together with our extensive portfolio of assets in nine countries globally, will provide a platform for us to maximise future growth opportunities to further strengthen our position as a leading independent convenience and fuel retailer.

 "Looking ahead, we are well placed to progress as a business in 2025, and I look forward to working with our global team to deliver continued growth."

 For the fourth consecutive quarter, the group reported underlying earnings growth delivering a seven per cent increase in underlying EBITDA in Q4.

 It was driving by a positive in grocery and merchandise where gross profit rose 10 per cent due to the impact of market-based initiatives in EG America.

 The US and European divisions were key drivers of growth for EG Group, with the US seeing an eight per cent increase in underlying EBITDA in the fourth quarter and Europe seeing a 19 per cent rise.

  The group's US business, which includes brands like Cumberland Farms, Fastrac, Kwik Shop, and Quik Stop, delivered an underlying EBITDA growth of 17 per cent.

 In Europe, where it operates brands like GoFresh and partners with retailers like Carrefour, Louis Delhaize, and REWE, EG group saw a 12 per cent increase in underlying EBITDA with the region’s grocery and merchandise, foodservice and fuel business streams contributing to the gross profit growth