Fuel Operator Alimentation Couche-Tard has reported a 5.2% year-on-year decline in net earnings, to $790.8 million (€712.8 million), in the first quarter of its 2025 financial year to 21 July 2024.
Revenue for the period increased 17.0% year-on-year to $18.3 billion (€16.5 billion), driven by the contribution from acquisitions and higher revenues in the company's wholesale fuel business.
However, the Circle K parent was partly offset by a lower average road transportation fuel selling price, and weak traffic as low-income consumers battled challenging economic conditions.
Merchandise and service revenues increased 5.1% to $4.5 billion (€4.06 billion), with same-store merchandise revenues registering a 1.1% decline in the United States, 2.1% in Europe and other regions, and 3.9% in Canada.
All markets were impacted by constraints on discretionary spending due to challenging economic conditions for low-income consumers, the company noted.
'Long-Term Strategy'
Brian Hannasch, president and chief executive officer of Alimentation Couche-Tard, stated, "As weakness in consumer behaviour persists, we are keeping our focus on our long-term strategy and bringing everyday value to our customers.
"The number one reason customers visit our locations is to quench their thirsts, and our summer beverage campaigns have been providing exceptional value and exciting exclusive flavours. We are also bringing personalised offers and savings to our most valuable customers through our growing loyalty membership programmes."
EBITDA for the quarter amounted to $1.6 billion (€1.4 billion), registering an increase of $75.6 million (€68.1 million), or 5.0%, compared with the same quarter last year.
Couche-Tard generated a gross profit of $3.2 billion (€2.9 billion) during the quarter, marking a year-on-year increase of 8.0%.
Alex Miller is set to step in as the next chief executive officer and president of Alimentation Couche-Tard on 6 September 2024.
