EG Group profits jumped in the third quarter, driven by a “strong” performance across its grocery division.

For the three months to 30 September 2024, the group saw underlying EBITDA rise by 8% to $300m (£235.8m), while grocery and merchandise gross profit increased by 4% to $344m (£270.4m).

EG Group said its positive grocery performance was driven by improved gross margins, with dispensed beverage initiatives in the US offsetting more challenging industry-wide economic conditions in the market.

Meanwhile, foodservice gross profit was up 4% to $117m (£92m) for the quarter and fuel volumes at a group level increased by 3%, which – combined with stable margins – drove gross profit growth, according to the forecourt operator.

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It comes as on 31 October, the business completed the sale of its remaining UK forecourt business and certain standalone foodservice locations to former Asda co-owner, EG Group co-founder Zuber Issa.

EG Group co-founder and CEO Mohsin Issa said: “The group made progress with its deleveraging strategy, with the disposal of the remaining UK forecourt business to Zuber completing at the end of October.

“Using the proceeds from this transaction and other non-core asset disposals, the group fully repaid the bridging facility in November 2024, with the remaining proceeds to be used to repay senior debt.

“A number of cash flow initiatives also allowed the group to repay the revolving credit facility at the end of September 2024. The group remains committed to further strengthening its balance sheet through the consistent execution of its deleveraging strategy.”

Looking ahead, he added: “EG Group expects to continue delivering its strong financial performance through its diversified and cash generative business model.

“As a leading global independent convenience retailer, EG Group has a differentiated customer proposition that is supported by well-known premium brand partnership and proprietary brand offerings. Now with a strengthened balance sheet, the group has the resilient operations and scale to win in an industry where size is vital for success.”