ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS THIRD QUARTER OF FISCAL YEAR 2025
LAVAL, QC, March 18, 2025 /PRNewswire/ - Alimentation Couche-Tard Inc. ("Couche-Tard" or the "Corporation") (TSX: ATD) announces its results for its third quarter ended February 2, 2025.
Executive Comments on the Quarter
Alex Miller, President and Chief Executive Officer, said: "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. 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
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 revenues2 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 margin1 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 margin1 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 liter, and CA 13.54¢ per liter in Canada, an increase of CA 0.55¢ per liter.
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1
Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS® Accounting Standards.
2
This measure represents the growth of (decrease in) cumulative merchandise revenues between the current period and comparative period for those stores that were open for at least 23 days out of every 28-day period included in the reported periods. Merchandise revenues are defined as Merchandise and service revenues excluding service revenues.
Summary of the Third Quarter of Fiscal 2025
For its third quarter ended February 2, 2025, Couche-Tard reported net earnings attributable to shareholders of the Corporation of $641.4 million, representing $0.68 per share on a diluted basis, compared with $623.4 million for the corresponding quarter of fiscal 2024, representing $0.65 per share on a diluted basis. The results for the third quarter of fiscal 2025 were affected by a pre-tax net foreign exchange gain of $12.3 million and by pre-tax acquisition costs of $8.7 million. The results for the comparable quarter of fiscal 2024 were affected by pre-tax acquisition costs of $5.6 million and by a pre-tax net foreign exchange gain of $5.4 million. Excluding these items, the adjusted net earnings attributable to shareholders of the Corporation1 were approximately $641.0 million, or $0.68 per share on a diluted basis for the third quarter of fiscal 2025, compared with $625.0 million, or $0.65 per share on a diluted basis for the corresponding quarter of fiscal 2024, an increase of 4.6% in the adjusted diluted net earnings per share1. This increase is primarily driven by higher road transportation fuel gross margin1, the contribution from acquisitions, the organic growth in our convenience operations, as well as the favorable impact of the share repurchase program, partly offset by the impact of strategic investments on operating expenses and depreciation. All financial information presented is in US dollars unless stated otherwise.
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1
Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards.
Significant Items of the Third Quarter of Fiscal 2025
Approximately one year after the acquisition of certain European retail assets from TotalEnergies, our annual synergies1 run rate reached approximately €13,0 million ($14.0 million) on operating expenses as of February 2, 2025. The synergies run rate is progressing according to plan and is still expected to reach €120.0 million ($127.0 million) in fiscal 2027 and €170.0 million ($179.0 million) in fiscal 2029. These synergies2 should result in reductions in operating, selling, administrative and general expenses, as well as sales uplift from the introduction of the Corporation's best practices in operations, customer offerings and concepts.
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1
Expected synergies represent forward-looking information and are destined to illustrate additional benefits expected to stem from these transactions. They might not be suitable for other needs. For additional information, please refer to the "Forward-Looking Statements'' section.
Other Changes in our Network during the Third Quarter of Fiscal 2025
We acquired 38 company-operated stores, including 20 stores operating under the Hutch's brand located in the states of Oklahoma and Kansas, in the United States, as well as 15 stores located in the Netherlands, reaching a total of 40 company-operated stores acquired through various transactions since the beginning of fiscal 2025. We settled these transactions using our available cash.
We completed the construction of 31 stores and the relocation or reconstruction of 8 stores, reaching a total of 69 stores since the beginning of fiscal 2025. As of February 2, 2025, another 56 stores were under construction and should open in the upcoming quarters.
Summary of changes in our store network
The following table presents certain information regarding changes in our store network over the 16‑week period ended February 2, 2025(1):
16‑week period ended February 2, 2025
Type of site
Company-operated
CODO
DODO
Franchised and
other affiliated
Total
Number of sites, beginning of period
10,410
1,408
1,455
1,199
14,472
Acquisitions
38
—
—
—
38
Openings / constructions / additions
31
3
10
5
49
Closures / disposals / withdrawals
(30)
(5)
(27)
(17)
(79)
Store conversions
18
(14)
(3)
(1)
—
Number of sites, end of period
10,467
1,392
1,435
1,186
14,480
Circle K branded sites under licensing agreements
2,473
Total network
16,953
Number of automated fuel stations included in the period-end
figures
1,171
—
97
—
1,268
(1)
Stores which are part of Circle K Belgium SA's network are included at 100%, while stores operated through our RDK joint venture are included at 50%.
Exchange Rate Data
We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in the United States.
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
16‑week periods ended
40-week periods ended
February 2, 2025
February 4, 2024
February 2, 2025
February 4, 2024
Average for the period(1)
Canadian dollar
0.7073
0.7375
0.7223
0.7418
Norwegian krone
0.0897
0.0934
0.0919
0.0938
Swedish krone
0.0917
0.0949
0.0938
0.0937
Danish krone
0.1414
0.1451
0.1443
0.1453
Zloty
0.2458
0.2470
0.2509
0.2431
Euro
1.0550
1.0824
1.0769
1.0837
Hong Kong dollar
0.1286
0.1280
0.1283
0.1278
(1)
Calculated by taking the average of the closing exchange rates of each day in the applicable period.
For the analysis of consolidated results, the impact of the translation of our foreign currency operations into US dollars is defined as the impact from the translation of our Canadian, European, Asian, and corporate operations into US dollars. Variances of our foreign currency operations into US dollars are determined as being the difference between the corresponding period results in local currencies translated at the current period average exchange rate and the corresponding period results in local currencies translated at the corresponding period average exchange rate.
Summary Analysis of Consolidated Results for the Third Quarter and First Three Quarters of Fiscal 2025
The following table highlights certain information regarding our operations for the 16 and 40-week periods ended February 2, 2025, and February 4, 2024, and the results analysis in this section should be read in conjunction with this table. The results from our operations in Europe and Asia are presented together as Europe and other regions.
16‑week periods ended
40-week periods ended
(in millions of US dollars, unless otherwise stated)
February 2,
2025
February 4,
2024
Variation
%
February 2,
2025
February 4,
2024
Variation
%
Statement of Operations Data:
Merchandise and service revenues(1):
United States
3,591.0
3,569.3
0.6
9,564.4
9,511.3
0.6
Europe and other regions
1,036.3
787.5
31.6
2,758.5
1,980.4
39.3
Canada
665.3
682.8
(2.6)
1,849.7
1,937.5
(4.5)
Total merchandise and service revenues
5,292.6
5,039.6
5.0
14,172.6
13,429.2
5.5
Road transportation fuel revenues:
United States
8,205.5
8,737.7
(6.1)
22,639.5
24,322.6
(6.9)
Europe and other regions
5,556.1
3,918.5
41.8
14,860.7
8,769.4
69.5
Canada
1,657.1
1,676.8
(1.2)
4,458.8
4,632.1
(3.7)
Total road transportation fuel revenues
15,418.7
14,333.0
7.6
41,959.0
37,724.1
11.2
Other revenues(2):
United States
12.6
11.0
14.5
36.6
28.7
27.5
Europe and other regions
169.4
227.5
(25.5)
392.0
461.0
(15.0)
Canada
10.2
10.9
(6.4)
26.1
27.8
(6.1)
Total other revenues
192.2
249.4
(22.9)
454.7
517.5
(12.1)
Total revenues
20,903.5
19,622.0
6.5
56,586.3
51,670.8
9.5
Merchandise and service gross profit(1)(3):
United States
1,220.2
1,179.8
3.4
3,237.3
3,230.8
0.2
Europe and other regions
404.5
309.0
30.9
1,075.8
777.8
38.3
Canada
215.6
233.5
(7.7)
620.7
654.3
(5.1)
Total merchandise and service gross profit
1,840.3
1,722.3
6.9
4,933.8
4,662.9
5.8
Road transportation fuel gross profit(3):
United States
1,204.6
1,191.8
1.1
3,253.7
3,330.8
(2.3)
Europe and other regions
483.2
311.2
55.3
1,307.5
761.6
71.7
Canada
166.3
162.6
2.3
427.0
437.1
(2.3)
Total road transportation fuel gross profit
1,854.1
1,665.6
11.3
4,988.2
4,529.5
10.1
Other revenues gross profit(2)(3):
United States
11.7
11.0
6.4
30.4
28.7
5.9
Europe and other regions
49.1
33.3
47.4
111.9
72.2
55.0
Canada
9.0
9.3
(3.2)
24.0
23.1
3.9
Total other revenues gross profit
69.8
53.6
30.2
166.3
124.0
34.1
Total gross profit(3)
3,764.2
3,441.5
9.4
10,088.3
9,316.4
8.3
Operating, selling, general and administrative expenses
2,136.0
1,975.3
8.1
5,418.4
4,882.7
11.0
Loss (gain) on disposal of property and equipment and other assets
3.7
1.4
164.3
(39.7)
(1.9)
1,989.5
Depreciation, amortization and impairment
656.2
537.5
22.1
1,564.6
1,267.6
23.4
Operating income
968.3
927.3
4.4
3,145.0
3,168.0
(0.7)
Net financial expenses
159.6
130.3
22.5
392.5
248.0
58.3
Net earnings
645.0
624.4
3.3
2,150.1
2,277.7
(5.6)
Net earnings attributable to non-controlling interests
(3.6)
(1.0)
260.0
(9.1)
(1.0)
810.0
Net earnings attributable to shareholders of the Corporation
641.4
623.4
2.9
2,141.0
2,276.7
(6.0)
Per Share Data:
Basic net earnings per share (dollars per share)
0.68
0.65
4.6
2.25
2.35
(4.3)
Diluted net earnings per share (dollars per share)
0.68
0.65
4.6
2.25
2.35
(4.3)
Adjusted diluted net earnings per share (dollars per share)(3)
0.68
0.65
4.6
2.25
2.32
(3.0)
16‑week periods ended
40-week periods ended
(in millions of US dollars, unless otherwise stated)
February 2,
2025
February 4,
2024
Variation
%
February 2,
2025
February 4,
2024
Variation
%
Other Operating Data:
Merchandise and service gross margin(1)(3):
Consolidated
34.8 %
34.2 %
0.6
34.8 %
34.7 %
0.1
United States
34.0 %
33.1 %
0.9
33.8 %
34.0 %
(0.2)
Europe and other regions
39.0 %
39.2 %
(0.2)
39.0 %
39.3 %
(0.3)
Canada
32.4 %
34.2 %
(1.8)
33.6 %
33.8 %
(0.2)
Growth of (decrease in) same-store merchandise revenues(4):
United States(5)(6)
(0.1 %)
(1.5 %)
(0.9 %)
— %
Europe and other regions(3)(7)
0.2 %
(0.3 %)
(1.0 %)
0.7 %
