Alimentation Couche-Tard announced fourth quarter and fiscal year 2024 results
Alimentation Couche-Tard announced the results for the fourth quarter and fiscal year 2024.
According to its financial statement released at the close of the Toronto Stock Exchange and New York Stock Exchange, for the fourth quarter total merchandise and service revenues were US$4.1 billion, a decrease of 1.7%. Same-store merchandise revenues decreased by 0.5% in the United States, by 2.0% in Europe and other regions, and by 3.4% in Canada, all impacted by constraints on discretionary spending due to challenging economic conditions for low income consumers.
Same-store road transportation fuel volumes decreased by 1.6% in the United States, by 1.7% in Europe and other regions, and by 3.5% in Canada. Fuel demand remained unfavorably impacted by challenging economic conditions.
For the fiscal year 2024, the company reported net earnings per diluted share of US$2.82 compared with US$3.06 for fiscal 2023, a decrease of 7.8%, while adjusted diluted net earnings per share1 were US$2.81 compared with US$3.12 for fiscal 2023, a decrease of 9.9%.
Strong network growth with the addition of 2,175 sites from TotalEnergies SE in Europe, for a total cash consideration of approximately €3.4 billion ($3.8 billion), 112 sites from MAPCO in the United States, for a total cash consideration of US$468.7 million as well as with the introduction of 76 new corporate stores.
"No doubt, this has been a challenging quarter with persistent inflation and continued pressure on consumers who are carefully watching their spending,” said Brian Hannasch, president and chief executive officer of Alimentation Couche-Tard in a statement along with the release of the results.
READ: Alimentation Couche-Tard reports lower earnings due to economic headwinds
“However, we remain very optimistic about our business. Even with recent setbacks in same-store sales, overall, they have steadily grown globally over the past two years with a two-year stack for the quarter in the United States of 2.8%. On the fuel side, we continue to strengthen our leadership position across most of our markets, and our margins remain healthy. We are also proud that our focus has consistently remained on providing everyday value and ease for our customers and leveraging the competitive advantages of our global scale and diversified business to take market shares and drive long-term growth."
Hannasch said that while this proved a difficult year for consumers, the company was committed to helping them by improving and expanding its Inner Circle membership program in the United States, for example, that now has over 6.3 million enrolled customers.
“We have launched summer drink campaigns across the network with exclusive offers providing compelling price points and driving traffic to our locations. We have also enhanced the customer experience through improved operational excellence and training of our store team members. This has led to us being recognized as a Gallup Exceptional Workplace for the third time in a row, which is a testament to our highly engaged teams making it a little easier for our customers.”
Filipe Da Silva, chief financial officer, said Couche-Tard will continue to focus on refining the company’s operating model to eliminate redundant efforts, unlock additional value, and expedite processes through better utilization of our global scale.
A webcast on Couche-Tard's results will take place on Wednesday, June 26, 2024, at 8:00 A.M. (EDT).
