Couche-Tard releases 2025 Q3 results, with earnings of US$645 million
For its third quarter ended February 2, 2025, Couche-Tard reported net earnings of US$641.4 million, up 3.3% from $623.4 million for the corresponding quarter of fiscal 2024.
Revenues were up 6.5% YOY to US$20.9 billion, up 6.5 per cent from US$19.6 billion. Earnings per diluted share were 68 cents, up from 65 cents a year earlier.
Acquisitions and higher revenues from wholesale fuels contributed to the higher revenues.
"We are pleased to report positive improvements in the business this quarter. While consumers continue to be cautious in their spending, we are seeing encouraging signs of resilience," Alex Miller, president and CEO, said in a release.
"Same-store sales were positive in both Canada and Europe compared to the same quarter last year, and we had sequential improvement in the United States, impacted by historic winter storms in our southern business units. Food continued to grow in the United States as our meal deal promotions performed well and have been extended to Canada. In our fuel business, we are maintaining market share in the United States and margins aligned with recent quarters. As inflationary pressure persists, our number one priority is winning our customers by being ready with the products and services they want at compelling value."
CFO Filipe Da Silva added: "We delivered notable progress this quarter, delivering our most improved performance in over a year as we continue to navigate challenging consumer trends, particularly in the United States. Our results reflect a balanced mix of organic growth and acquisitions, demonstrating the strength of our globally diversified network, the success of our integration activities and our commitment to drive long-term sustainable growth. This quarter also marks the one-year anniversary of the acquisition of certain assets from TotalEnergies, which is on track for synergy realization and continues to deliver solid results thanks to the dedicated efforts of all of our team members."
Quarter highlights
- Net earnings attributable to shareholders of the Corporation were $641.4 million for the third quarter of fiscal 2025 compared with $623.4 million for the third quarter of fiscal 2024. Adjusted net earnings attributable to shareholders of the Corporation1 were approximately $641.0 million compared with $625.0 million for the corresponding quarter of last year, representing an increase of 2.6%.
- Net earnings attributable to shareholders of the Corporation were $0.68 per diluted share for the third quarter of fiscal 2025 compared with $0.65 per diluted share for the third quarter of fiscal 2024. Adjusted diluted net earnings per share1 were $0.68, representing an increase of 4.6% from $0.65 for the corresponding quarter of last year.
- Total merchandise and service revenues of $5.3 billion, an increase of 5.0%. Same-store merchandise revenues decreased by 0.1% in the United States, while it increased by 0.2% in Europe and other regions, and by 2.8% in Canada.
- Merchandise and service gross margin increased by 0.9% in the United States to 34.0%, decreased by 0.2% in Europe and other regions to 39.0%, and decreased by 1.8% in Canada to 32.4%.
- Same-store road transportation fuel volumes decreased by 3.0% in the United States, by 0.9% in Europe and other regions, while it increased by 3.6% in Canada.
- Road transportation fuel gross margin of 44.28¢ per gallon in the United States, an increase of 1.09¢ per gallon, US 9.29¢ per liter in Europe and other regions, an increase of US 0.73¢ per litre, and 13.54¢ per litre in Canada, an increase of 0.55¢ per litre.
A conference call to discuss these results will be held on Wednesday, March 19th, featuring Miller and Da Silva, CFO, who will answer live questions from analysts. More to come.
