Alimentation Couche-Tard Q1 profit surges 44% despite big drop in fuel sales

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LAVAL, Que. — Alimentation Couche-Tard says its net profit surged 44 per cent in its latest quarter despite a big drop in fuel sales at its convenience stores because of COVID-19.

The Quebec-based retailer that operates the Circle K brand says it earned US$771.1 million or 70 cents per diluted share in its first quarter, up from US$538.8 million or 48 cents per share a year earlier.

Adjusted earnings attributable to shareholders came in at 71 cent per share, up from 40 cents per share forecast by analysts, according to financial markets data firm Refinitiv.

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Revenues for the three months ended July 19 decreased 31.4 per cent to US$9.71 billion, compared with US$14.2 billion a year earlier and below forecasts of US$10.55 billion.

The retailer said its in-store sales benefited from shoppers buying more, while fuel sales were hurt by lower demand and prices, partially offset by strong fuel margins.

Same-store fuel volume decreased 21.2 per cent in the U.S., 25.6 per cent in Canada, and 12.4 per cent in Europe.

“We delivered another solid quarter in the face of a challenging and unprecedented macroeconomic environment caused by the COVID-19 pandemic,” stated chief financial officer Claude Tessier.

This report by The Canadian Press was first published Sept. 1, 2020.

Companies in this story: (TSX:ATD.B).

The Canadian Press

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