LAVAL, QC. - For its fourth quarter ended April 24, 2022, Alimentation Couche-Tard Inc. delivered net earnings of $477.7 million, representing $0.46 per share on a diluted basis, compared with $563.9 million, or $0.52, per diluted share for the fourth quarter of fiscal 2021.
Total merchandise and service revenues hit $3.8 billion, an increase of 1.0%. Same-store merchandise revenues increased by by 0.1% in Canada, 2.3% in the United States and 6.2% in Europe and other regions.
In addition, same-store road transportation fuel volumes increased by 4.3% in Canada and by 3.7% in Europe and other regions, however decreased by 1.7% in the United States.
Our revenues were $16.4 billion, up by $4.2 billion, an increase of 34.3%, compared with the same quarter in 2021, "mainly attributable to a higher average road transportation fuel and other fuel products selling price, the contribution from acquisitions, and organic growth on merchandise and service sales, while being partly offset by the net negative impact of approximately $206.0 million from the translation of our foreign currency operations into US dollars."
Overall, in fiscal 2022, revenues increased by $17.0 billion, or 37.3%, compared with fiscal 2021.
"We are proud to report a remarkable year despite the continued pressures caused by the pandemic, global inflation, and staffing challenges. With our operational and financial resilience, we had record-breaking results across key metrics and remained focused on our strategic goals. During the quarter, we made notable progress accelerating organic growth both inside the store and on our forecourts, as well as innovating for the future, including beginning our e-mobility journey in North America and rolling out smart checkout frictionless technology in targeted geographies. We also started the work with select partners to get a better understanding of our consumers' interests in rapid delivery. I want to thank all our team members, customers, and shareholders for their continued commitment to the business as we prepare for an even stronger year ahead" said Brian Hannasch, president and CEO of Alimentation Couche-Tard.
"No doubt with inflation hitting 40-year record highs this quarter, consumers have experienced pressure both at the pump and at the checkout line. We are committed to providing good value for our customers across the network, and through our in-store localized pricing efforts and fuel promotions we are working hard to make our customers' lives a little easier every day, even during difficult economic times."
CFO Claude Tessier added: "Our results for both the fourth quarter and fiscal 2022 have exceeded our expectations on many fronts, especially in light of a challenging global environment. Inflation was particularly notable during the fourth quarter, impacting all aspects of our business. We, once again, diligently managed through these challenging conditions and were able to mitigate the impacts from a higher inflation level and continued pressure on wages. We have also continued to reinvest in our operations, while maintaining a particularly strong balance sheet, allowing us to return capital to our shareholders during the quarter, including the completion of our upsized 2021-2022 share repurchase program. As we look ahead to fiscal 2023, our healthy financial position and strong capital structure, including our newly implemented US Commercial Paper Program, position us well to continue delivering strong results and return further value to our shareholders as we remain focused on our ambitious double-again strategy."
Of note during the quarter
- On April 8, 2022, as a result of the geopolitical events leading to economic sanctions imposed from and against Russia, as well as the developments following the company's announcement it had suspended the operations of 38 stores located in Russia, the company "determined that we lost control over our investment in our wholly-owned Russian subsidiaries. As a result, an amount of $56.2 million was recorded to Depreciation, amortization and impairment."
- On April 24, 2022, as a result of a decrease in the market capitalization of Fire & Flower Holdings Corp., an impairment loss of $33.7 million was recorded to bring our investment in the associated company to its fair value.
- On April 28, 2022, subsequent to the end of fiscal 2022, the company exercised the Series B common share warrants in Fire & Flower for a total consideration of CA $37.8 million ($29.5 million), which increased its interests in Fire & Flower to 35.3%.
In addition, the company noted several changes to its store network during Q4.
- ACT acquired four company-operated stores, for a total of 74 company-operated stores through various transactions since the beginning of fiscal 2022.
- In March 2021, the company announced its intention to sell certain sites across 28 states in the United States and six provinces in Canada. During the fourth quarter of fiscal 2022, the convenience giant completed the sale of 44 sites.
- ACT completed the construction of 42 stores and the relocation or reconstruction of 16 stores, reaching a total of 133 stores since the beginning of fiscal 2022. Another 58 stores are under construction and should open in the upcoming quarters.
- In May, ACT acquired, through a joint venture with Musket Corporation, four road transportation fuel terminals located in Florida, Illinois and North Carolina, United States.