Petrol station operator EG Group saw its profits rise in 2024 ahead of an expected stock market listing later this year.
The business said its underlying EBITDA grew 9% to $992m in the year to 31 December, with notable contributions from the US and European businesses.
Zuber Issa, who founded EG Group with his brother Mohsin in 2001, told The Sunday Times in January “the road map is starting now” on an IPO and that he expected it to materialise in New York this year or next.
The initial public offering could value the business at about $13bn and would allow TDR Capital to cash out some of its investment more than a decade after first backing the brothers.
Zuber said the choice of New York was driven by the fact that despite the business’s roots in England, more than half of its earnings were now in the US.
Last year, EG Group sought to strengthen its balance sheet by selling off numerous assets. In April, it sold its remaining 218 KFC franchise restaurants in the UK to Yum Brands, and in October completed the sale of its remaining UK forecourt business and certain foodservice locations to Zuber.
It also refinanced $3.5bn of debt in December to try and unlock additional cash to invest in the business.
“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,” said CEO Mohin Issa.
In Europe, where EG operates brands like GoFresh and partners with retailers such as Carrefour, the group saw a 12% increase in EBITDA last year.
In the US, EBITDA grew 17%, with the business pointing to initiatives such as coffee and dispensed beverage pricing and product range optimisation.
The Issa brothers started out with one petrol station and have expanded the business to more than 5,000 sites in nine countries, partly through debt-fuelled acquisitions.
TDR and the Issas each own about 50% of the company.
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