EG Group has increased its profits after strong performances in the US and Europe

The petrol forecourt business posted a 12% increase in underlying EBITDA to $282m (£215.48m), which it said was driven by “strong performances in the USA and Europe”.

Gross profit grew 5% on a like-for-like basis helped by strong fuel and grocery and merchandise performance.

The group said it had made progress with its deleveraging strategy as it completed the sale of its 216 KFC franchise restaurants in the UK and Ireland with the proceeds being used to repay debt.

The group added: ”The transaction announced on June 7, 2024, to sell the group’s remaining UK forecourt business and certain standalone foodservice locations to co-founder Zuber Issa, is expected to complete by the fourth quarter.

“Proceeds from these transactions will be used to repay debt, to further strengthen our balance sheet following the significant deleveraging and refinancing activity over the last 18 months.”

Mohsin Issa, co-founder and chief executive of EG Group, said: “EG Group delivered a strong performance in Q2 – with underlying EBITDA increasing by 12%, powered by a stand-out performance in the USA and earnings growth in Europe.

“In the USA, we continued to deliver on our strategic growth initiatives, designed to drive an improved organic performance. These include expanded dispensed beverage initiatives which – alongside improved margins in the Grocery & Merchandise segment – helped to grow EBITDA in the region by more than 25%. Meanwhile, strong fuel performance in Germany led to a 10% increase in underlying Europe EBITDA.

“The group also made good strategic progress across the quarter by continuing to strengthen its balance sheet. The sale of the group’s 216 KFC franchise restaurants in the UK and Ireland completed on April 29, and the group remains on track to complete the sale of the remaining UK forecourt business by Q4 2024. Proceeds from these transactions will be used to repay debt.

“This excellent quarterly performance is in no small part due to the hard work of EG colleagues globally – and I would like to thank them sincerely for all their hard work and efforts, as we continue to deliver against our strategy.”