Couche-Tard CEO Alain BouchardRyan Remiorz
Alimentation Couche-Tard Inc., Canada's largest convenience store operator, says its third quarter profits fell to $54.8-million (U.S.) from $71.1-million as the company was hit with lower fuel revenues in the United States.
The company said Tuesday its earnings dropped to 29 cents a share for the third quarter ended Jan. 31, compared with 36 cents a share a year earlier.
Overall revenues from its 5,900 outlets across North America rose to $4.9-billion from $3.9-billion.
The company, which reports in U.S. dollars, was affected by the recession, which cut demand for gasoline and squeezed profit margins on fuel sales from Couche-Tard's gas bar business in the United States.
This decrease was partly offset by the increase in same-store merchandise sales in Canada and the United States, by the contribution from stores acquired as well as by a lower income tax rate.
"Overall, third quarter's results are satisfying considering the motor fuel gross margin recorded in our U.S. markets," president and chief executive officer Alain Bouchard, said in a release.
"Despite a drop in U.S. motor fuel margins compared to the same period last fiscal year, we considerably improved our performance."
"On an annual basis, margin is in line with our expectations based on historical margins which average 13 to 15 cents per gallon."
In its financial report, Couche-Tard said its operating, selling, administrative and general expenses fell 1.2 per cent.
Meanwhile, the company raised its quarterly dividend to 5 cents a share, up from 3.5 cents.
The company, with more than 48,000 employees, operates convenience stores and gas bars in Canada and the United States under such well known banners as Couche-Tard, Mac's and Beckers in Canada and Circle K in the United States.