EG Group has announced its final quarter and full year results, with foodservice sales of $309m (£243m) in Q4 representing a rise of 10% year-on-year.

This performance was driven by the convenience retailer’s continued focus on pricing and operating efficiencies as well as the ongoing foodservice investment programme, notably in Europe, according to the update.

Continued growth in foodservice drove a 15% increase in gross profit for the segment over the full year. Grocery and merchandise grew sales by 1% in Q4 and gross profit by 2.6% over the year, reflecting a focus on product mix, pricing, and site investment.

The group announced it had entered into agreement to sell its 218 KFC franchise restaurants in the UK and Ireland to KFC UK&I, with the sale expected to complete in H1 2024. Proceeds will be used to repay debt.

The group completed the disposal of the majority of the UK&I business to Asda over the year, which – along with the sale and leaseback transaction in the US and other US non-core asset disposals – generated combined proceeds of c$4bn (£3.15bn).

This decreased debt from c$10bn (£7.87bn) at 1 January 2023 to c$6bn (£4.72bn) at 31 December 2023, representing a significant step to the group’s deleveraging target.

The group’s remaining 2025 debt maturities have been fully addressed through the successful completion of a refinancing programme, with the business remaining committed to achieving net leverage of mid 4x in the near- to mid-term.

The EV strategy continues to develop through the commercial agreement with Tesla, first announced in November 2023 as part of EG Group’s goal of becoming one of Europe’s leading charge point operators. The group had rolled out 165 chargers over 79 sites at the end of 2023.

In the US, the group has made ‘good progress’ in its strategy to enhance performance organically with minimal capital spend. This strategy includes a focus on the dispensed beverage offering, growth in foodservice earnings, and developing a hyper-localised approach alongside expanding the SmartPay programme to prioritise loyalty and rewards.

Zuber and Mohsin Issa CBE, co-founders and co-CEOs of EG Group, said: “2023 saw the group action a number of significant strategic and refinancing objectives. We have strengthened the group’s balance sheet and moved forward with our deleveraging programme, and remain committed to further deleveraging in the near- to mid-term.

“In addition to our leverage reduction and the refinancing of our 2025 maturities, the group delivered a resilient performance, underpinned by our well-balanced and diversified international business.

“We are focused on maximising the future earnings potential of the group and have identified a number of local initiatives to grow and enhance performance across all of our markets.

“Looking ahead, we are confident that EG Group is well-positioned for future growth and success. We are focused on ensuring that the group executes on its compelling strategy, and would like to thank all colleagues for their hard work over the previous year.”