Grocery and merchandise were the biggest contributors to EG America's fourth-quarter 2024 gross profits.
- EG America is No. 5 on CSP’s 2024 Top 202 U.S. c-store chains by store count.
“This excellent performance is testament to the efforts and commitment of our 38,000 colleagues who continue to deliver great customer service across our grocery and merchandise, foodservice and fuel propositions each day, as well as our financial and operational delivery,” said Mohsin Issa, CEO of EG Group.
Take a look at how the company’s segments contributed to both U.S. and global profits for the fourth quarter and full year 2024.
EG America Fourth Quarter
Gross profit, which totaled $893 million in the fourth quarter of 2024 and $3.8 billion for the full year, was driven by successful margin expanding initiatives in the U.S., the company said. That's compared to $1 billion gross profit in fourth-quarter 2023 and $4.3 billion for fiscal year 2023.
The makeup of fourth-quarter gross profit in the U.S. includes grocery and merchandise (47%), fuel (45%), foodservice (3%) and other (5%).
In fourth-quarter 2024, the business completed the sale of 39 of its convenience stores located in Illinois, which operate under the Minit Mart banner, for net proceeds of $40 million. Additionally, the business completed the sale of 19 of its convenience stores located in Kansas and Missouri, which operate under the Minit Mart banner, for net proceeds of $19 million.
Four underperforming sites that were at the end of their lease terms were closed following strategic review.
EG America Full Year
EG Group's U.S. business, which operates brands including Cumberland Farms, Fastrac, Kwik Shop and Quik Stop, delivered full-year underlying EBITDA (earnings before interest, taxes, depreciation and amortization) growth of 17% in 2024.
Growth came from four key areas: product, fuel, customer engagement and operating efficiencies, the company said. Initiatives included coffee and dispensed beverage pricing and product range optimization, underpinned by data analysis and merchandising innovation.
EG Group Fourth Quarter
On Oct. 31, the business completed the sale of the remaining U.K. forecourt business and certain standalone foodservice locations to Zuber Issa, previous co-CEO of EG Group, generating net proceeds of $342 million. Zuber Issa stepped down as co-CEO of EG Group, while his brother, Mohsin Issa, stayed on as sole CEO. Zuber Issa owns the EG On The Move brand, which has more than 34 EG On The Move-branded sites. The sale and leadership transition was announced in EG’s first-quarter 2024 trading report and was completed in November.
EG Group’s growth was driven by a positive performance in grocery and merchandise, where gross profit rose 10% due to the impact of product and market-based initiatives at EG America.
Thirty-four percent of gross profit in the fourth quarter came from grocery and merchandise. It was 31% of gross profit in the fourth quarter of 2023.
The Group's price-focused strategy in foodservice also delivered a 4% increase in gross profit. It accounted for 11% of gross profit in the fourth quarter of 2024.
Fourth-quarter fuel performance was characterized by challenging market conditions in the U.S. and Australia, offset by a positive performance in Europe. Underlying Fuel gross profit decreased by $26 million to $439 million in the fourth quarter.
Challenging market conditions resulted in a fall in volumes in the U.S.
Volumes decreased by 0.5% in quarter four 2024 to nearly 1 billion gallons. Fuels made up for 49% of quarter four 2024 gross profit, while it was 51% in the fourth quarter of 2023.
EG Group Full Year
In 2024, EG Group increased its full-year EBITDA by 9%. EBITDA was $238 million for the fourth quarter of 2024 and $992 million in fiscal year 2024.
Grocery and merchandise gross profit rose by 7%. Foodservice’s gross profit rose by 5%. Fuel performed resiliently despite fluctuating market conditions, with a decline of 0.3% in gross profit and flat margins globally, the company said.
U.S. Growth Initiatives
EG America aims to drive higher performance within its non-fuel offerings with a focus on dispensed beverage, food and margin enhancing products, while developing a hyper localized approach.
It also plans to improve fuel volumes sold through investment in growing segments such as diesel while focusing on a premium offering and reducing supply costs to maximize margins.
To improve the customer experience, EG said it will focus on loyalty and rewards while partnering with suppliers.
“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 maximize future growth opportunities to further strengthen our position as a leading independent convenience and fuel retailer,” said Mohsin Issa.
Leadership and Global Growth
In February, the Group appointed Bob Dennis as an independent director of the board.
EG Group said it remains committed to environmental, social and governance (ESG) criteria. The company expects to see a minimum 15% reduction by 2030 (vs 2021). This is based on forecasting prepared with the Carbon Trust, which has been approved by the board and is aligned with wider business growth forecasts.
EG Group established itself in the United States in 2018 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 portfolio of 225 Minit Mart c-stores in 2018. And in 2019, among other acquisitions, EG Group acquired Cumberland Farms and its nearly 660 c-stores in the Northeast and Florida. Other acquired brands include Certified Oil, Fastrac and Sprint Food Stores.
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