Alimentation Couche-Tard Inc. (TSX: ATD) has announced its results for its third quarter ended February 2, 2025, indicating net earnings attributable to shareholders were $641.4 million compared with $623.4 million for the third quarter of fiscal 2024.
“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. 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,” said Alex Miller, President and Chief Executive Officer.
“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.”
Filipe Da Silva, Chief Financial Officer, 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.”
Quarterly Highlights
- 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 regions1, 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.
“Our revenues were $20.9 billion for the third quarter of fiscal 2025, up by $1.3 billion, an increase of 6.5% compared with the corresponding quarter of fiscal 2024, mainly attributable to the contribution from acquisitions and higher revenues in our wholesale fuel business, partly offset by a lower average road transportation fuel selling price, softness in fuel demand and traffic impacted by unusual winter conditions in the United States, as well as the net negative impact of approximately $212.0 million from the transaction of our foreign currency operations into US dollars,” said the company.
“For the first three quarters of fiscal 2025, our revenues increased by $4.9 billion, or 9.5%, compared with the corresponding period of fiscal 2024, mainly attributable to similar factors as those of the third quarter. The translation of our foreign currency operations into US dollars had a net negative impact of approximately $204.0 million on our revenues.”
Couche-Tard is a global leader in convenience and mobility, operating in 29 countries and territories, with close to 17,000 stores, of which approximately 13,000 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland. It also has an important presence in Luxembourg, Germany, the Netherlands, Poland, as well as in Hong Kong Special Administrative Region of the People’s Republic of China. Approximately 149,000 people are employed throughout its network.
