Alimentation Couche-Tard Inc. reported a fourth-quarter profit of US$863.4 million, nearly doubling its earnings from the same period last year. The convenience store giant said net income for the quarter ended April 26 was US$863.4 million, up from US$439.4 million in the prior year.
Revenue and margin growth
Revenue for the quarter rose to US$16.2 billion, compared with US$15.1 billion a year ago, driven by higher fuel prices and increased merchandise sales. Same-store merchandise sales in the United States grew by 3.2%, while fuel volume increased by 1.5% across its network.
According to the company, the strong performance was supported by improved fuel margins and cost-control measures. Couche-Tard also benefited from lower operating expenses as a percentage of revenue.
Annual results
For the full fiscal year, Couche-Tard reported net income of US$3.2 billion, up from US$2.8 billion in the previous year. Revenue for the year reached US$63.5 billion, compared with US$60.1 billion.
"Our teams delivered solid results in a challenging environment, demonstrating the strength of our business model," said Brian Hannasch, president and CEO of Couche-Tard, in a statement. "We continue to focus on operational excellence and strategic growth initiatives."
Outlook and acquisitions
Couche-Tard said it expects to continue its acquisition strategy, having completed several deals in the past year. The company also plans to invest in technology and store renovations to enhance the customer experience.
Analysts had expected earnings of about US$800 million for the quarter, according to estimates compiled by Bloomberg. The results exceeded those expectations, sending shares up 2.3% in afternoon trading on the Toronto Stock Exchange.
