Alimentation Couche Tard’s revenues increased in the first quarter due to higher fuel costs


By Kathryn Hardison

Alimentation Couche Tard Inc. reported higher revenues in the first quarter of its fiscal year, mainly due to higher fuel prices, although consumer demand for fuel fell and the company was hit by the force of the US dollar.

The Quebec-based convenience store operator reported earnings of $872.4 million, or 85 cents per share, for the period ending July 17, compared to $764.4 million, or 71 cents per share, a year ago. Adjusted earnings per share were also 85 cents each. Analysts polled by FactSet had expected 94 cents per share.

Revenue rose 37% to $18.66 billion. Analysts expected $22.81 billion.

The company said revenue rose primarily due to higher average fuel prices and contributions from acquisitions. However, the company said the revenue growth was partly offset by lower fuel demand and site divestiture following its network strategic review. Alimentation Couche Tard also took a hit of $336 million due to the strong dollar.

Total merchandise and service revenues increased slightly to $4.1 billion. Same-store merchandise sales increased 3.5% in the United States and 2.8% in Europe and other regions. In Canada, same-store merchandise sales decreased 1.3%.

Same-store road transportation fuel volumes fell 4% in the United States and 3.7% in Europe and other regions, the company said. Same-store road transportation fuel volume in Canada increased 0.4%.

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