Canadian convenience operator Couche-Tard has reported an increase in full-year net income despite its earnings falling in its fourth quarter.
The retailer said yesterday (12 July) that net earnings for the year ended 24 April increased 22% to US$370m on the back of a 15.4% rise in revenue to US$18.9bn.
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However, for the fourth quarter, the company reported a 7% decline in net earnings to $64m. It said that its fourth-quarter net earnings in the last financial year benefited from a $11.4m gain, net of tax, from the disposal of Casey’s shares and the reversal of provisions totalling $3.6m, net of taxes.
Excluding these items, Couche-Tard said net earnings for the fourth quarter were up 19% due to the growth of merchandise and service sales and related margin in the US. Couche-Tard also pointed to the growth in same-store motor fuel volume in Canada and the US, the strengthening of the Canadian dollar and “sound management of its expenses”.
It said that growth was partially offset by a decrease in US motor fuel gross margin, combined with the “steep increase” in electronic payment modes costs generated by the higher average fuel price.
Fourth-quarter sales rose 20.9% to $4.8bn, while sales, excluding fuel, were up 3.8% to reach $1.4bn.
“I am very satisfied with the results for the fourth quarter and fiscal 2011. However, we remain cautious as in recent years. The level of unemployment and household indebtedness as well as rising motor fuel prices are negative factors globally and affect the resources available to consumers in general. Their confidence in the short term seems to be affected, but the medium and long term perspectives remain positive,” said president and CEO Alain Bouchard.
