20% drop in Couche-Tard sales

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The Canadian Press

The Quebec multinational also posted a significant drop in its net profit for the three months ended January 31, 2021.

Net income reached 607.5 million, or 55 cents per share, compared to 659.9 million, or 59 cents per share, for the corresponding quarter a year earlier.

In its results released after the markets closed, Couche-Tard reported sales of $ 13.2 billion for the quarter, down $ 3.4 billion.

The company attributed this performance in particular to the negative impact of COVID-19 on fuel demand and the lower average selling price of fuel for road transport.

It also noted the disposition during the year of a portion of its US wholesale fuel business, as well as the divestiture of its interest in CrossAmerica Partners (CAPL).

Adjusted net income was approximately $ 622.0 million. On a per share basis, it was 56 cents, up 7.7% from the same quarter last year.

Third quarter 2021 results were impacted by a net foreign exchange loss of $ 16.5 million before tax, as well as acquisition costs of $ 5.2 million before tax.

Couche-Tard indicated that ridership remained lower throughout its network due to the increase in social restriction measures and teleworking which continues to be promoted in several regions.

Still, the company said it posted growth in merchandise sales due to new purchasing options and an adapted product offering.

Total revenues from goods and services were $ 4.5 billion, an increase of 5.6%.

Same-store merchandise sales increased 2.9% in the United States, 2.8% in Europe and other regions, and 4.7% in Canada.

The gross margin on merchandise and services decreased 1.0% in the United States, 0.7% in Canada and 3.8% in Europe and other regions.

Couche-Tard said it has access to approximately $ 5.3 billion through its cash and unsecured revolving operating credit facility.

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