(Laval) Alimentation Couche-Tard has observed that rising fuel and food costs are affecting customers’ driving and shopping habits, while boosting sales of its private label products.
Posted at 1:08 p.m.
The president and CEO of the Laval convenience store chain, Brian Hannasch, pointed out that while some big brands like Coca-Cola or Monster Energy have maintained strong sales, customers have tried to save money by choosing other products. cheaper food.
“We are seeing very strong growth of more than 10% in our house brands, in this period when consumers are looking for value,” he said on Wednesday during a conference call with analysts, the day after the publication of Couche-Tard’s first quarter financial results.
Inflation at the pump affected the volume of fuel sold, which declined as consumers sought to save money on gasoline, Hannasch said.
“It is clear that high fuel prices during the quarter and overall inflationary pressures are having a temporary impact on the driving and refueling behaviors of our consumers,” he said.
Couche-Tard posted a net profit of 872.4 million US in the first quarter, up 14.1% compared to the same period last year.
The company, which operates in Canada, the United States, Europe and Asia under numerous retail banners, including Couche-Tard, Circle K, Holiday and Ingo, reported total revenues of 18 US$.7 billion in the first quarter, up 37.4% from US$13.6 billion a year ago.
Analysts had expected earnings of 73 cents per share on revenue of $17.7 billion, according to forecasts compiled by financial data firm Refinitiv.
The company attributed the revenue increase primarily to higher average fuel selling prices, organic growth in merchandise and service sales and the contribution from acquisitions.
These elements were partially offset by a drop in demand for fuel and by the impact of the sale of sites following a strategic review of the Couche-Tard network, as well as a foreign exchange loss of 336 .0 million related to the translation into US dollars of transactions in other currencies.
Merchandise sales at establishments open for at least a year rose 35% in the United States, 2.8% in Europe and other regions, but fell 1.3% in Canada.
As for fuel volumes, they decreased by 4.0% in the United States in establishments open for at least one year, while they fell by 3.7% in Europe and in the other regions. In Canada, these volumes increased by 0.4%.
On Tuesday, the company also reached an agreement with the Competition Bureau to resolve concerns over Couche-Tard’s $346.8 million deal to acquire the Wilsons gas station chain in the Atlantic provinces.
Alimentation Couche-Tard has thus agreed to divest itself of 46 Wilsons sites and supply agreements, as well as a Couche-Tard service station, by selling them to one or more buyers who will be approved by the Commissioner of Competition.
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