Alimentation Couche-Tard has reported its financial results from its second quarter of fiscal year 2024.
For the quarter — ending Oct. 15 — the company announced net earnings of $819.2 million, compared with $810 million for the corresponding quarter of fiscal 2023. The adjusted net earnings for the quarter were approximately $792 million.
Adjusted diluted net earnings per share remained stable as the favorable impact of the share repurchase program, the contribution from acquisitions and the increase in merchandise and service gross margin were offset by higher depreciation as the company continues to invest in its network, higher net financial expenses as well as a higher income tax rate.
The company reported total merchandise and service revenues of $4.1 billion, an increase of 1%. Same store merchandise revenues, however, decreased by 0.1% in the U.S., by 0.2% in Europe and other regions and increased by 1.6% in Canada.
Couche-Tard also reported a road transportation fuel gross margin of 49.56 cents per gallon — an increase of 40 cents per gallon in the U.S.
Additionally, growth of expenses for the quarter was 2.5% while normalized growth of expenses was 1.5%, which the company noted remains below the average inflation observed throughout the corporation’s network.
Couche-Tard also closed the acquisition of 112 company-owned and operated convenience retail and fuel sites in the U.S.
“We are pleased to announce a solid second quarter with good progress across most of our key metrics, although we did see softening in same-store sales in the U.S., driven by weakness in the cigarette category and cycled against a robust second quarter, up 5.6%, last year,” said Brian Hannasch, president and CEO of Alimentation Couche-Tard. “As America’s Thirst Stop, we are focused on the growth of our beverage category by offering great assortment, innovation and value in both packaged and dispensed beverages at affordable price points.”
Couche-Tard is a global leader in convenience and mobility, operating in 25 countries and territories, with more than 14,400 stores, of which approximately 10,800 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States, and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, as well as in Ireland. It also has an important presence in Poland and Hong Kong Special Administrative Region of People’s Republic of China. Approximately 128,000 people are employed throughout its network.
