Standout Results in USA and Europe Drive Growth

  • EG Group reports a 12% increase in underlying EBITDA to £214m ($282m) in Q2
  • Strong performances in USA and Europe fuel growth
  • Gross profit up 5% in fuel and grocery & merchandise divisions
  • EBITDA surges over 25% in the US due to initiatives in dispensed beverages and improved margins in grocery & merchandise
  • Europe sees a 10% rise in EBITDA driven by strong fuel performance in Germany
  • Sale of 216 KFC franchise restaurants completed in April, remaining UK forecourt business to be sold by Q4 2024
  • Co-founder and CEO Mohsin Issa credits global colleagues for the success

EG Group, a forecourt giant, has reported a 12% increase in underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for its second quarter, reaching £214 million ($282 million. This growth was driven by strong performances in both the US and European markets. The company’s gross profit rose 5% on a like-for-like basis due to impressive results in its fuel and grocery & merchandise divisions. In the United States, EBITDA surged over 25% thanks to successful initiatives in dispensed beverages and improved margins in its grocery & merchandise arm. Europe saw a 10% rise in EBITDA, driven by a strong fuel performance in Germany. The company has also made progress in its strategic restructuring, including the sale of its 216 KFC franchise restaurants in the UK and Ireland, which was completed in April. EG Group is on track to finalize the sale of its remaining UK forecourt business and certain standalone food service locations to co-founder Zuber Issa by the fourth quarter of 2024. These transactions are expected to strengthen the group’s balance sheet and aid in debt repayment. EG Group’s CEO Mohsin Issa attributed the strong Q2 performance to the hard work of its global colleagues, thanking them for their efforts as they advance strategic objectives.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about EG Group’s financial performance, including specific numbers and details on its growth in different regions. It also mentions the company’s strategic restructuring plans and quotes from the CEO. However, it includes a brief mention of unrelated news about Asos selling a stake in Topshop, which may be considered as a digression.
Noise Level: 3
Noise Justification: The article provides relevant information about EG Group’s financial performance and strategic moves but includes an unrelated mention of Asos at the end, which may distract readers from the main topic.
Financial Relevance: Yes
Financial Markets Impacted: EG Group’s stock price and the forecourt and retail industry
Financial Rating Justification: The article discusses EG Group’s financial performance, including its EBITDA growth in the US and Europe, and its ongoing strategic restructuring efforts. This information is relevant to investors and stakeholders in the company and can impact the stock price as well as the broader forecourt and retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailgazette.co.uk