Alimentation Couche-Tard earnings fall as consumers watch spending

LAVAL, Que. — Alimentation Couche-Tard Inc. says its net earnings fell by nearly a third in the fourth quarter as inflation-tightened consumers watch their spending.

The convenience store giant says net earnings attributable to shareholders totaled $453 million in the quarter ended April 28, down from $670.7 million in the same quarter last year.

The company says the earnings decline was partly due to lower fuel gross margins, with the quarter being a week shorter than last year, and expenses and impairment related to investments and acquisitions.

Same-store merchandise revenue fell 0.5% in the US, 2% in Europe and 3.4% in Canada due to lower discretionary spending.

Chief executive Brian Hannasch says in a statement that it was undoubtedly a challenging quarter, but even with the decline in same-store sales, he remains optimistic about the business.

To adapt, Hannasch says the company has worked to expand its loyalty program, launch summer drink promotions and improve employee training.

This report by The Canadian Press was first published on June 25, 2024.

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The Canadian Press