EG Group slides to $258m loss in $465m turnaround from previous profit

The Blackburn-based billionaire Issa brothers lost $258m in the last financial year, according to the 2022 annual report released today.

EG Group recorded a $258m pre-tax loss in 2022 against a $207m profit in 2021.

Globally, the group made a $167m loss in 2020.

EG Group, which includes Euro Garages, Cooplands and upmarket fast food outlet Leon, recorded turnover of $30.6bn, up from $26.420bn the previous year. No other significant financial information was released earlier this year.

In May this year EG announced that supermarket giant Asda, which it owns with equity group TDR Capital, would acquire the majority of its UK and Ireland operations in a deal worth more than £2bn, in a deal aimed at reducing its debts, aided by the net proceeds of $1.4bn from the sale and lease back transaction in the US.

Co-founders and chief executives, Zuber Issa and Mohsin Issa, said: “At our Q3 trading update in November 2022, we stated management’s commitment to reducing total net leverage through debt reduction and free cash fl ow generation.

“We updated on our progress in Q1 2023, announcing the sale and leaseback on a portfolio of sites on the east coast of the United States of America to Realty Income Corporation, the global real estate investment bank, for a total consideration of approximately $1.5bn, and the transaction is expected to complete during Q2 2023.

“This attractive portfolio – which EG America will continue to operate and trade – comprised over 400 store assets under the Cumberland Farms, Fastrac, Tom Thumb and Sprint banners.

“Following completion of the transaction in Q2 2023, net proceeds will be used to repay debt and the business remains committed to a signifi cant freehold underpin in the USA and globally.”

They added: “We continue to have multiple potential levers to support our deleveraging options and we will continue to consider these on a selective basis where we believe they make financial sense and align with our strategic vision for the group.

“In addition, we completed the disposal of 26 non-core sites under the Minit Mart banner in the group’s central USA portfolio for total gross proceeds of $48m in Q2 2023, with no impact on the group’s EBITDA.”