EG Group Reduces Debt – following sale of UK and Ireland Forecourts
The EG Group has reported reducing its debts following the sale of UK and Ireland forecourts to ASDA earlier this year for almost £2 billion (£1.98bn). The sale combined with proceeds from the sale of non-core US assets, have allowed for the repayment of almost £4 billion of the group’s debt.
Growth in gross profit during Q3 came mainly from foodservice, grocery and merchandise. The Group’s Foodservice gross profit increased by 24% to $221m for the quarter, boosted by increased sales activity and improved margins across UK&I and Continental Europe, and driven by increased footfall, particularly across the Benelux region.
Zuber Issa and Mohsin Issa, CBE co-founders and co-CEOs of EG Group, said: “We continued to deliver upon our key strategic priorities in Q3, including growing gross profit in our foodservice, and grocery and merchandise businesses. In particular, foodservice – which continues to represent a significant growth opportunity globally – delivered a standout performance with gross profit up 24% in Q3, driven by increased revenues, as customers responded positively to our evolving and compelling proposition.”
Also in Q3, the Issas did a “ground-breaking deal” with Tesla to purchase their latest ultra-fast charging units. They said this demonstrated how they continue to progress their strategy on EVs and alternative fuels, as reported in Forecourt Trader.