Canadian retailer Couche-Tard has booked a jump in full-year earnings, as it benefited from higher sales, improved margins and an extra trading week.
The Quebec-based forecourt operator said net profit in the 53 weeks to the end of April totalled US$457.6m on revenue of just under $23bn, compared with profit of $369.2m on sales of $18.55bn in the 52-week period a year earlier.
The company said it has seen growth that was “significant and steady” throughout the year and added that fourth-quarter trends gave it cause for optimism as it looks to fiscal 2013.
During the year, Couche-Tard acquired a number of stores as it expanded its North American footprint. The contribution from these was only really felt in the third and fourth quarters, Couche-Tard said, and the impact of acquisitions is therefore expected to be more significant in fiscal 2013.
During the fourth quarter, the Canadian retailer expanded into Europe with the $2.9bn acquisition of Norway’s Statoil Fuel & Retail. The deal is expected to contribute to earnings and value in its first full-year of ownership.
However, CFO Raymond Paré noted, Couche-Tard had to significantly raise its debt levels to close the deal. Paré said that paying down debt would be a key priority for the group moving forward.
