Parkland's earnings up 40% in Q1 2023
CALGARY - Parkland Corp. is reporting earnings of $77 million in the first quarter of 2023, up 40% from $55 million a year ago.
The Calgary-based convenience store operator and fuel retailer says sales and operating revenue for the quarter ending March 31 were $8.2 billion, up 7.2% from $7.6 billion during the first quarter of 2022. As well, diluted earnings per share were 43 cents, up 23% 35 cents a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization in Canada were down 12.6% to $167 million, while international adjusted EBITDA more than doubled, to $183 million.
The company says unseasonably warm weather lowered commercial volumes, partially offset by 2022 acquisitions and organic growth. Fuel margins declined year-over-year due to favourable retail market conditions in Q1 2022. Food and company c-store same store sales growth (excluding cigarettes) was 6.8% (compared to 1.7% in Q1 2022).
Like convenience store operators across the country, Parkland's stores are experiencing a decline in legal tobacco sales due, in part, to contraband tobacco.
READ: 2023 Tobacco + Vaping Report: The real story behind the numbers
“The company’s disciplined focus on delivering shareholder value continues to guide us and we are on track for a successful year. Our performance this quarter demonstrates our ability to execute on our strategy, capture synergies and deliver organic growth throughout our retail and commercial businesses,” Parkland president and CEO Bob Espey said in a release. “I am confident Parkland will deliver its $2 billion Adjusted EBITDA ambition by 2025 without additional acquisitions, while reducing leverage and improving shareholder returns.”
During the quarter, Parkland continued to expand its On the Run c-store footprint to 670 locations. It also kicked off rebranding of the more than 160 Husky locations it acquired. More recently, the company began rolling out its new stand-alone stores, unveiling its first site in British Columbia.
READ: Parkland's forecourt makeovers
Parkland also reported it grew its Journie rewards loyalty program to 4.5 million members. The company recently announced a multi-year partnership with Aeroplan that comes into play this fall.
READ: Parkland teams up with Aeroplan for new loyalty partnership
Parkland is an international fuel distributor and retailer with operations in twenty-five countries, including approximately 4,000 retail and commercial locations across Canada, the United States, and the Caribbean region.
