• Adjusted Q1 net profit up
  • Operating income increases 
Couch-Tard recorded an increase in underlying profit

Couch-Tard recorded an increase in underlying profit

Canadian c-store chain Couche-Tard reported an increase in adjusted first-quarter earnings, although reported profits fell on costs from its first acquisition in Europe.

Couche-Tard said net earnings excluding charges from the purchase of Norway's Statoil Fuel and Retail, as well as losses on forward contracts, were up 23.8% at US$173m for the three months to 22 July. Reported net earnings fell 26.2% to $102.9m.

Nevertheless, operating income rose 33.4% to $243.8m. Revenues were up 16.3% at $6.02bn. Same-store merchandise revenues increased 2.8% in the US and by 5% in Canada. In the US, excluding tobacco products, the increase was 6.6%.

CFO Raymond Paré said: "During the remainder of fiscal year 2013 and the upcoming fiscal years, we will favour a rapid reduction of our indebtedness level to allow us the flexibility to seize opportunities that lie ahead. Likewise, we remain determined to maintain the quality of our credit profile by keeping focused on organic growth as well as growth through acquisitions.

"Given our past experience as well as the quality and the geographical diversification of cash flows generated by our operations, and considering that we expect that Statoil Fuel & Retail should significantly and positively contribute to our results starting this year, we are confident that we will be able to meet our objectives."

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? Closing of the acquisition of Statoil Fuel & Retail for US$2.58 billion. Results for the first quarter include those of Statoil Fuel & Retail for the period beginning June 20, 2012 and ending June 30, 2012. 

? Excluding non-recurring items related to the acquisition of Statoil Fuel & Retail, which amounted to US$ 108.0 million before income taxes, diluted adjusted net earnings per share are US$0.95 compared to US$0.75 last year, a 26.7% increase. 

? Same-store merchandise revenues up 2.8% in the United States and 5.0% in Canada. In the United States, excluding tobacco products, the increase is 6.6%.  

? Consolidated merchandise and service gross margin up US$41.5 million or 7.9%, posting at 33.7%. 

? In the United States, same-store road transportation fuel volume up 1.1% and total volume up 18.9%. 

? In Canada, same-store road transportation fuel volume up 2.2% and total volume up 8.0%. 

? Road transportation fuel gross margin in the United States stood at US23.20¢ per gallon compared to US19.95¢ per gallon for the corresponding period of the previous fiscal year. In Canada, road transportation fuel margin stood at CA5.61¢ per litre compared to CA5.53¢ per litre the previous year. 

? On August 14, 2012, subsequent to the end of the first quarter, issuance of 7.3 million Class B Subordinate Voting Shares (the "Shares") at a price of CA$47.25 per share for net proceeds of approximately CA$330.0 million.

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Original source: Couche-Tard