Alimentation Couche-Tard reported in its newly released financial results for the second quarter of 2024 a net profit of US$819.2 million for its second quarter, up from US$810.4 million for the same period a year earlier. Its revenues amounted to US$16.4 billion in the second quarter, down 2.7% compared to the previous year.
According to Couche-Tard, the drop in its turnover in the second quarter is mainly attributable to a lower average selling price of fuel for road transport, but also to a lower demand for fuel for road transport than in the same period a year ago.
Its net earnings for the second quarter were US$819.2 million, up from US$810.4 million a year earlier. Total merchandise and service revenues were US$4.1 billion, up 1% from last year. Couche-Tard says same-store merchandise revenues decreased by 0.1% in the U.S. and 0.2% in Europe, but rose 1.6% in Canada.
Couche-Tard added that the softening in U.S. same-store sales was driven by weakness in the cigarette category and compared with the second quarter a year earlier. And while fuel volumes decreased by 1.5% in the U.S. and 0.9% in Europe, they increased 3% in Canada.
"We have substantially expanded the rollout of our Inner Circle membership program, which is now in seven U.S. business units covering close to 3,000 locations with over 2.7 million fully enrolled, providing meaningful convenience and fuel rewards to our most valuable customers,” says president and CEO Brian Hannasch in remarks released with the financial results. “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. We also continue to be pleased with the performance of our fuel business, in terms of both volumes and margins, as we continue to bring traffic to our sites through reoccurring promotional Fuel Days.”
Hannasch continues that he is pleased with the several recent developments that have assisted the company’s growth after the announcement of our 10 For The Win five-year strategy. That includes the closing of the acquisition of 112 MAPCO sites and the completion of acquisition of TotalEnergies in four new European countries. “On the organic front, we are making progress on our stated goal of building 500 stores over the next five years, having already finished more than 40 new stores this fiscal year with considerably more in the pipeline that are either currently under or starting construction in the upcoming months.”
Filipe Da Silva, chief financial officer, adds "It gives me great pleasure to share that our focused efforts in managing costs are yielding tangible benefits. This quarter, we've successfully kept the growth of our normalized expenses to a modest 1.5%, a figure that stands well below the average current rate of inflation affecting our operations. This is a clear indication of our team's dedication to efficiently operate and deliver value to our shareholders, even amidst widespread economic challenges. Our ability to surpass expectations on this financial indicator demonstrates our commitment to financial discipline and operational excellence.”
With files from The Canadian Press