Canadian convenience retailer Couche-Tard has booked an increase in third-quarter profits.
driven by a string of small US acquisitions, a better performance by the merchandise and services segment, and reductions in operating costs.
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For the 16 weeks to 29 January, Couche-Tard earned US$86.8m, up 24.7% on the prior-year period. The retailer said the increase was driven by an increased contribution from merchandise and services sales, cost control, and a contribution from recent store acquisitions. Operating profit in the period climbed 13.1% to $110.2m.
The retailer recorded sales growth of 20.4% to $6.6bn. Sales were boosted by an increase in fuel sales, acquisitions, and increased same-store sales in Canada and the US.
“This good performance, combined with continuous monitoring of our costs, has enabled us to deliver very satisfactory results,” said Couche-Tard president and CEO Alain Bouchard. “Our teams continue to work hard on developing our fresh food offering and on the integration of stores, whether newly acquired or on the verge of being acquired, which suggests to me that great things are ahead for the coming quarters.”
For the remainder of fiscal 2012, Couche-Tard said it expects to “pursue its investments with caution” in order to improve its network.
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By GlobalDataThe firm said it is “well-positioned”, given the economic climate and its access to capital, to make acquisitions.
