LAVAL, Que. — Alimentation Couche-Tard Inc. beat expectations even though its net profit slipped in the first quarter of its fiscal year despite a 40 per cent increase in revenues.
The Quebec-based convenience store retailer earned US$764.4 million or 71 cents per diluted share, compared with US$777.1 million or 70 cents per share a year earlier.
Adjusted earnings fell 4.7 per cent to US$758 million from US$795 million in the first quarter of 2020. On a share basis they were unchanged at 71 cents.
Revenues for the three months ended July 18 were US$13.58 billion, up from US$9.71 billion in the prior-year period.
Total merchandise revenues increased 5.4 per cent with same-store merchandise revenues, a key retail metric, decreasing 0.2 per cent in the U.S. and 9.6 per cent in Canada and increasing 5.9 per cent in Europe and other regions. Same-store fuel volume increased 11.8 per cent in the U.S., 10.4 per cent in Canada and 6.3 per cent in Europe.
Couche-Tard, which operates Circle K in Canada, the U.S. and Europe as well as in other countries, was expected to earn 65 cents per share in adjusted profits on US$13.27 billion of revenues, according to financial data firm Refinitiv.
"While remaining impacted by COVID-19 traffic patterns, fuel volumes improved and we continued to achieve healthy margins as well as expanded our global fuel business in terms of procurement capabilities, pricing analytics, and the Circle K fuel rebranding efforts, where results continued to be encouraging," stated CEO Brian Hannasch.
This report by The Canadian Press was first published Aug. 31, 2021.
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