EG Group profits surge 9% in FY24

EG Group has reported a 9% increase in EBITDA to $992m (£782.5m) in FY24 driven by significant contributions from its US and European divisions. Grocery and merchandise gross profit rose by 7% to $1.26bn (£994.1m), driven by a gross margin increase of 193bps to 31.1%. Meanwhile, foodservice gross profit was also up 5% to $494m (£389.7m) and gross margin increased by 195bps to 59.7%. According to EG, its fuel segment performed “resiliently” despite fluctuating market conditions, with a slight decline of -0.3% in gross profit (on a like-for-like basis) and flat margins globally. EG Group’s US business – which operates proprietary brands, including Cumberland Farms, Fastrac, Kwik Shop, and Quik Stop – delivered full-year underlying EBITDA growth of 17% in FY24. This was driven by a continued improved performance from growth initiatives focused on four key areas: product, fuel, customer engagement, and operating efficiencies. Initiatives included coffee and dispensed beverage pricing and product range optimisation, underpinned by data analysis and merchandising innovation. In Europe – where EG operates proprietary brands, including GoFresh, and partners with retailers such as Carrefour, Louis Delhaize and REWE – it delivered a 12% increase in underlying EBITDA, with the region’s grocery and merchandise, foodservice and fuel business streams contributing to growth in gross profit. Similarly, for the three months to 31 December 2024, the group also saw a 7% increase. This was primarily driven by a particularly positive performance in grocery and merchandise, where gross profit rose 10% due to the impact of product and market-based initiatives at EG America. EG’s price-focused strategy in foodservice also delivered a 4% increase in gross profit. However, Q4 fuel performance was characterised by challenging market conditions in the US and Australia, offset by a resilient performance in Europe. The US delivered an 8% increase in underlying EBITDA in Q4, while Europe – with operations in including Germany, Italy, France, Netherlands, Luxembourg, Belgium and the UK– grew by 19% in the same period on an underlying basis. EG Group strengthened its balance sheet through non-core divestments and targeted refinancing activities in FY24. In April, the Group completed the sale of its remaining 218 UK&I KFC franchise restaurants to Yum! Brands’ KFC division and in October it completed the divestment of its remaining forecourt business and certain foodservice locations to EG Group’s co-founder, Zuber Issa (who remains a non-executive director of EG Group). Additionally, in February 2025, the group strengthened its board with the appointment of Bob Dennis as an independent director. Mohsin Issa CBE, CEO of EG Group, said: “2024 was another successful year for EG Group. We grew full-year EBITDA by 9% on an underlying basis, with notable contributions from our USA and European businesses. This excellent performance is testament to the efforts and commitment of our 38,000 colleagues who continue to deliver great customer service across our grocery and merchandise, foodservice 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.” He added: “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.”