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Alimentation Couche-Tard Reports Ease in Q3 Earnings, Propels International Market Presence

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Lauren Miller

March 20, 2024 - 21:05 pm

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Alimentation Couche-Tard Inc. Announces Decrease in Quarterly Net Earnings Amidst Strong Global Expansion Efforts

Though economic headwinds persist, particularly in the United States, Alimentation Couche-Tard Inc. continues to execute its aggressive global growth strategy. The company's financial performance for the third quarter of fiscal 2024 reflects its resilience in the face of challenging market conditions and its commitment to providing value to customers across its expanding network.

Financial Overview

The third quarter saw net earnings attributable to shareholders at $623.4 million, or $0.65 per diluted share, a decrease from the $737.4 million reported in the same quarter of the previous fiscal year. Adjusted net earnings followed a similar trend, amounting to approximately $625.0 million compared to $741.0 million for the third quarter of the preceding year. Adjusted diluted net earnings per share decreased by 12.2% to $0.65 from $0.74.

Total merchandise and service revenues exhibit a slight growth of 1.6%, reaching $5.0 billion. However, same-store merchandise revenues showed regional variances, with a decrease of 1.5% in the United States, 0.3% in Europe and other regions, and 1.2% in Canada.

The merchandise and service gross margin experienced regional fluctuations. In the United States, it decreased by 0.1% to 33.1%, whereas in Canada and Europe, there was an increase of 1.9% to 34.2% and 39.2%, respectively.

Same-store road transportation fuel volumes also displayed differing regional performances with a decline of 0.8% in the United States and 1.9% in Europe and other regions but a slight increase of 0.2% in Canada.

Acquisition and Network Expansion

Alimentation Couche-Tard has actively expanded its footprint, most notably with the addition of 2,175 sites from TotalEnergies SE in Europe and 112 sites from MAPCO in the United States. These acquisitions have contributed significantly to the corporation’s growth narrative, accounting for a total cash consideration of approximately $4.2 billion.

The success of these integrations is visible in the company’s dynamic movement within the market, including inaugural Circle K branded locations in Berlin and significant progress across MAPCO sites. This robust network growth underpins Couche-Tard's strategic ambitions and enhanced market reach.

Capital Structure and Debt Management

The corporation successfully issued senior unsecured notes, strengthening its capital structure and positioning it for ongoing strategic pursuits. Canadian-dollar-denominated senior unsecured notes amounting to CA $500.0 million ($371.7 million) and subsequent US-dollar and Euro-denominated issuances totaling $1.5 billion and €1.35 billion ($1.45 billion) provide Couche-Tard with a robust financial platform for its '10 For the Win' strategy execution.

Board of Directors Update

The company announced the retirement of Daniel Rabinowicz from the Board of Directors effective March 20, 2024. Mr. Rabinowicz's departure follows a tenure of over 10 years, where he contributed significantly to Couche-Tard’s growth trajectory.

Looking Ahead

Couche-Tard is focused on sustaining its strategic expansion efforts and delivering consistent value to customers. With the rollout of the Inner Circle loyalty program and Fuel Day promotions, the corporation is poised to overcome economic challenges and maximize the benefits of its scale.

In summary, the mixed financial results are reflective of a company navigating tough market conditions while positioning itself for long-term growth. With significant network expansion, effective capital structure management, and solid strategic initiatives, Alimentation Couche-Tard's resilience is evident as it continues on its growth trajectory.

For detailed financial insights and to review the corporation's comprehensive financial statements, please visit Alimentation Couche-Tard Inc.'s website.

The company's ongoing developments can be followed through an online webcast scheduled for March 21, 2024, at 8:00 A.M. (EDT). Analysts, investors, media, and interested individuals can access the webcast on Couche-Tard's official website.

Note: This document is a rephrased version of the original news content, structured to provide a clear and comprehensive understanding of Alimentation Couche-Tard Inc.'s financial results for the third quarter of fiscal 2024. It includes key details on the corporation’s performance, strategic acquisitions, and forward-looking statements as of the knowledge cutoff in March 2024.