Dive Brief:
- EG America, parent of popular c-store brands such as Cumberland Farms, Tom Thumb and Kwik Shop, saw its full-year earnings before interest, taxes, depreciation and amortization surge 17% last year, according to the company’s full-year trading update released Wednesday.
- The company said Wednesday the EBITDA growth was driven by “improved performance” from several of the retailer’s growth initiatives, notably its coffee and dispensed beverages program.
- EG’s latest results look like a significant improvement compared to where the c-store retailer was a year ago. Its adjusted EBITDA decreased by about 16% between 2022 and 2023, while its total revenue fell by 12%, according to its 2023 annual report.
Dive Insight:
Around this time last year, EG America’s parent company, EG Group, said it planned to bolster the Massachusetts-based retailer’s dispensed beverage offerings in 2024.
One unique approach to the category that year was EG’s launch of its “dirty soda” marketing campaign, which combines soda, flavor shots and even coffee into one drink. The concoctions were a hit with customers.
In its annual report released on Wednesday, EG America said the growth from dispensed beverages was a result of “product range optimization,” which the company tapped into by using merchandising data analysis.
On a broader scale, the 17% EBIDTA surge also came from an increased focus on four key areas within the company, according to the report: product, fuel, customer engagement and operating efficiencies.
Globally, EG Group grew its full-year EBITDA by 9% in 2024, according to the report. The company reduced debt by selling off many of its retail assets in the U.S. and overseas.
“We are committed to further deleveraging in a disciplined manner,” EG Group CEO Mohsin Issa said in the announcement.
