Circle K owner Alimentation Couche-Tard, Inc. said that its Q1 profit rose nearly 25%, as the world's second-biggest convenience-store operator benefitted from higher fuel sales.
Net income attributable to the company rose to $455.6 million, or 81 cents per share, in the first quarter ended 22 July, from $364.7million, or 64 cents per share, a year earlier.
Total revenue rose to $14.79 billion from $9.85 billion.
Positive Performance
“Overall, we are very pleased with the results this quarter,” said Brian Hannasch, president and CEO of Alimentation Couche-Tard.
“In particular, we had strong year-over-year same-store merchandise revenues increases across the network in the US, Canada, and Europe, with a good balance of in-store traffic and basket growth, while we were able to maintain or improve underlying margins in most geographies,” Hannasch added.
He noted that the business enjoyed the benefit of good weather in Europe and Eastern Canada during the period, which benefitted the business’s performance.
“As first seen in the fourth quarter of fiscal 2018, all geographies also continue to see improving traffic trends, partially driven by the ramping-up of our promotional marketing and advertising initiatives, as well as by strong consumer spending,” Hannasch said.
He added that the business was “pleased” with its fuel volumes and margins in the US and in Europe, in the face of rising retail prices.
News by Reuters, edited by ESM. Additional reporting by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
