EG Group grocery sales remained positive despite the group’s full-year EBITDA having decreased by 7% in 2023 to $1.1bn (£866m).
The group, which is owned by the billionaire Issa Brothers, said the reason for the fall reflects a backdrop of oil volatility and a stronger fuel performance in the previous year.
However, total gross profit for grocery and merchandise grew 2.6% over the year.
In the three months to 31 December 2023, EG Group reported EBITDA of $231m (£181.9m), while grocery and merchandise continued to perform well with sales up 1% in the quarter.
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The fuel and convenience retailer said this was due to its continued focus on product mix, pricing and site investment.
During the year, Asda acquired EG Group’s UK and Ireland operations for an enterprise value of £2.27bn to accelerate its growth strategy in convenience, omni-channel retail and foodservice.
The move saw the supermarket giant obtaining 350 petrol filling station sites and over 1,000 food-to-go locations.
In the fourth quarter, the group also sold all of its UK and Ireland KFC franchise restaurants to restaurant company Yum! Brands’ KFC Division.
This transaction formed part of the EG’s “significant” deleveraging strategy to ensure it has a sustainable capital structure.
EG Group co-founders and co-CEOs Zuber and Mohsin Issa 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.
“We are focused on maximising the future earnings potential of the group and have identified a number of local initiatives to grow and enhance performance across all of our markets.
“Looking ahead, we are confident that EG Group is well-positioned for future growth and success. We are focused on ensuring that the group executes on its compelling strategy.”
