Alimentation Couche-Tard has reported net earnings of $746.4 million (€678.5 million), or $0.70 per diluted share, in the third quarter of its financial year, up from $607.5 million (€552.3 million), or $0.55 per diluted share, in the same period in its previous financial year.
Adjusted net earnings amounted to $746.0 million (€678.2 million), up from $622.0 million (€565.5 million) in the third quarter of fiscal 2021.
The reported total merchandise and service revenues increased by 5.8% to $4.8 billion in this period.
Same-store merchandise revenue increased 3.7% in the United States, 7.2% in Europe and other regions, and decreased 0.8% in Canada, the company noted.
On a two-year basis, same-store merchandise revenues increased at a compound annual growth rate of 3.4% in the United States, 5.0% in Europe, and 2.1% in Canada.
Brian Hannasch, president and chief executive officer of Alimentation Couche-Tard, commented, "Same-store merchandise sales were particularly strong in Europe as well as in the US with our freshly prepared food programmes and packaged beverages among the main drivers of growth.
“Across the business, in fuel volumes and traffic we saw strong results early in the quarter, but both were impacted by work from home orders and rise in COVID-19 cases, especially towards the end of the quarter in our larger urban centres in North America and Europe. However, we continue to achieve healthy fuel margins and benefit from strategic initiatives on which we remain laser-focused.”
Other Quarterly Highlights
In the United States, merchandise and service gross margin increased 1.0%, to 33.6%, while in Canada it increased by 0.2% to 31.6%.
Europe and other regions saw a 0.7% decline, to 37.8%, impacted by the integration of Circle K Hong Kong.
Hannasch stated, ”Over the quarter, we have worked hard to overcome the historic labour and supply chain issues in our industry and are pleased to report significant improvement in more recent periods.
"Fresh Food, Fast has continued to grow across the globe, with over 3,200 stores now carrying the programme, and we are seeing strong year-over-year sales growth. Here, our operators continue to focus on execution of our strategy and optimising our assortment.”
The company completed the rebranding of more than 180 Circle K outlets during the quarter. It now operates more than 1,000 electric vehicle chargers in Europe.