Alimentation Couche-Tard, which operates the Circle K forecourt brand in many countries across Europe, has reported a 1.6% increase in revenue in its merchandise and service division, which operates its retail operations, in its third quarter.
The group reported merchandise and service revenues of $5.0 billion (€4.6 billion) in the period, however same-store revenues were down by 1.5% in the United States, by 0.3% in Europe and other regions, and by 1.2% in Canada.
Gross profit in the merchandise and service division stood at $1.7 billion (€1.56 billion) for the period, an increase of $52.5 million (€48.34 million) on the same period last year, with the majority of this driven by the contribution from acquisitions, 'which amounted to approximately $75.0 million (€69.00 million), while being partly offset by softness in traffic', the group said.
Gross margin in the division rose by 1.9 percentage points in Europe, to 39.2%, as well as increasing by 1.9 percentage points in Canada (to 34.2%), however it declined marginally in the US, to 33.1%.
'Significant Growth'
"We are pleased this quarter with the significant growth of our network," commented Brian Hannasch, president and chief executive of Alimentation Couche-Tard.
In January, the forecourt operator completed the acquisition of specific European retail assets from TotalEnergies. This expansion brought four new countries, close to 22,000 team members, and 2,175 sites into its operations.
Local Leadership
"We have a strong track record of successful integrations and realisation of synergies and are pleased of how the transition is progressing," Hannasch added.
"We have identified local leadership, opened our first Circle K branded location in Berlin, and are working closely with our new, but highly engaged teams. We are also advancing nicely on the integration of our 112 MAPCO sites, and we continue to grow our pipeline of new to industry locations."
Couche-Tard's operations spanning 29 countries and territories. It boasts over 16,700 stores globally, with a significant presence in the US, Canada, Scandinavia, the Baltics, Ireland, Poland, and Hong Kong, while recent expansions into Belgium, Germany, Luxembourg, and the Netherlands have further solidified its presence.
