EG Group reported a mixed financial performance for the first quarter of 2025, for the three months ending March 31.
Foodservice, fuels and grocery and merchandise all declined in gross profit and revenue compared to the first quarter of 2024, both in the U.S. and globally. However, the Blackburn, U.K.-based convenience-store business saw growth in its U.S. rewards program, acquired nine c-stores in the Northeast and appointed two new executives.
In his first earnings statement since becoming CEO, Russ Colaco said the company continued to execute its long-term growth strategy despite short-term challenges.
“Across the group, we delivered a mixed performance in Q1, impacted by adverse weather conditions in the U.S. and major calendar events,” Colaco said, while expressing confidence in the company’s global scale and future opportunities.
U.S. Performance Updates
The U.S. is the largest region of operation for EG Group, and the number of EG sites remained unchanged in the first quarter, at 1,463.
- EG America is No. 6 on CSP’s 2025 Top 40 Update to the 2024 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2025 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
On Friday, the company entered into a leasehold agreement for nine “newer, large format” properties built within the last six years in the Northeast. Three stores are in Massachusetts and six are in Rhode Island. This is an acquisition structured as a long-term lease of 25 years with the option to purchase at the end, Colaco said.
The sites have an average size of 5,000 square feet and a 2-acre lot. The transaction is expected to close before September, and the stores will be branded as Cumberland Farms. EG Group did not name the seller.
“We will continue to look for small-scale acquisitions that compliment our existing asset footprint,” said Colaco.
Turning to U.S. financials, underlying EBITDA in the U.S. in the first quarter decreased by 12% year-over-year to $50 million.
Grocery and merchandise revenue in the U.S. in first-quarter 2025 was $577 million; foodservice was $32 million; and fuel was $1.05 billion. Notably, hot dispensed beverage, salty snack and cigarette sales were all down 8-10% year-over-year.
In the U.S., EG gross profit was made up of 49% grocery and merchandise, 42% fuel, 3% foodservice and 6% other.
EG said the first quarter in the U.S. was defined by winter weather, economic uncertainty and cautious consumer spending. In the first two months of the year, there were cold temperatures and persistent snowfall, which disrupted operations and consumer traffic. Cold weather extended further south than in recent years, EG said. In Florida, where EG operates more than 150 locations, it had more than 100 store closures due to snowfall. These contributed to a 2% decrease in gross profit for the U.S. year-over-year.
Growth in digital assets helped offset declining revenue, the company said.
EG America’s loyalty program, Smart Rewards, relaunched in March. Membership has grown to 2 million customers and daily active users have grown by 150%.
“Customers using the platform exhibit higher visit frequency and larger basket sizes, validating our investment in this digital capability,” said Colaco.
The company has enhanced the program with targeted promotions, mobile ordering and push notifications. EG plans to integrate AI personalization, expanded third-party partnerships and tiered reward structures.
Global Performance Updates
EBITDA was $153 million in first-quarter 2025, which is an 11% decrease from the same quarter a year ago.
Grocery and merchandise revenue was $873 million, down from $938 million in the first quarter of 2024. Gross profit for this category was $262 million for global EG Group, a decrease of 5% compared to first-quarter 2024. EG said that grocery and merchandise was affected by weather conditions in the U.S., a shift in the Easter holiday timing and the impact of leap day.
Fuel revenue totaled $4.11 billion in first-quarter 2025, compared to $4.62 billion in first-quarter 2024. Fuel gross profit was down 3% year-over year for the company, to $376 million, and fuel volumes decreased 3%. Fuel margins were flat compared to last year in all regions except Germany and Australia.
Total foodservice revenue was $139 million, down from $266 million year-over-year. Foodservice gross profit was $84 million, down from $152 million in first-quarter 2024.
Leadership
EG Group appointed a new chief legal officer, Erik Chalut, and a new executive vice president of corporate finance, Steve Briggs.
Chalut will start on June 9 and will be based in the U.S. but have global responsibilities. He joins EG from Weber LLC. He was previously corporate counsel at the Kellogg Co.
"It is a privilege to join EG Group at a time of significant opportunity," Chalut said. "I was attracted to the company's innovative proposition, which positions it well to capitalize on future growth opportunities both in the United States, and across its worldwide operations. I am energized by the prospect of working closely with Russ and EG Group's talented and ambitious management to spearhead further progress."
Briggs will join the company on June 2, and he will initially focus on U.S. business. He was most recently president of Northeast Asia at the Kraft Heinz Co.
Founded in 2001 by the Issa family, Blackburn, United Kingdom-based EG Group is a gasoline forecourt and retail convenience operator with more than 6,200 sites across the United Kingdom and Ireland, Europe, the United States and Australia. In 2018, EG Group established itself in the United States as EG America by acquiring Kroger’s 762-site c-store network, which included the Turkey Hill, Loaf 'N Jug, Kwik Shop, Tom Thumb and Quik Stop banners. It acquired TravelCenters of America’s Minit Mart convenience-store business in 2018. The portfolio included 225 c-stores. And in 2019, among other acquisitions, EG Group acquired Cumberland Farms and its nearly 660 c-stores in the Northeast and Florida.
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