Forecourt giant EG Group saw full-year profits dip last year on lower fuel prices and “oil volatility”.

Announcing its fourth quarter and full-year results for the year to 31 December 2023, the group said full-year underlying EBITDA dropped by 7% to $1.1bn.

It said this decrease reflected “the backdrop of oil volatility and strong fuel performance in the prior year”.

Gross profit for grocery and merchandise grew 2.6% during the year, while continued growth in foodservice drove a gross profit increase of 15% for the segment over 12 months.

In the fourth quarter, reported EBITDA was flat at $231m after it adjusted for the disposal of the majority of its UK business to Asda and rental costs from its sale and leaseback transaction in the US.

Grocery and merchandise continued to grow, up 1% in the quarter, reflecting its focus on product mix, pricing and site investment.

In foodservice, quarter sales of $309m represented growth of 10% year on year as it invested in its foodservice operations in Europe.

Overall, full-year capex was $243m, which was a reduction of 37% year on year as it focused on maximising liquidity.

During the year it completed the disposal of its UK & Ireland business to Asda, the sale and leaseback of properties in the US and the disposal of other US assets, which generated combined proceeds of $4bn and reduced debts from $10bn to $6bn.

Zuber and Mohsin Issa, co-founders and co-CEOs of EG Group, said: “2023 saw the group action a number of significant strategic and refinancing objectives. We have strengthened the group’s balance sheet and moved forward with our deleveraging programme, and remain committed to further deleveraging in the near to mid-term.

“In addition to our leverage reduction and the refinancing of our 2025 maturities, the group delivered a resilient performance underpinned by our well-balanced and diversified international business.

“We are focused on maximising the future earnings potential of the group and have identified a number of local initiatives to group and enhance performance across all of our markets.

“Looking ahead, we are confidence that EG Group is well-positioned for future growth and success. We are focused on ensuring that the group executes on its compelling strategy.”

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