Canadian retailer Alimentation Couche-Tard said today (9 March) that its third-quarter profits dropped 23% despite increased sales, as lower US gas margins hit earnings.
The company, which operates Circle K convenience stores and forecourts throughout North America, said profits totalled C$54.8m (US$53.5m) in the three months to 31 January, down from C$71.1m last year.
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Nevertheless, Couche-Tard’s sales jumped 26.2% to C$4.94bn on higher gas prices and a stronger Canadian dollar.
However, gross fuel margin in the US fell 29.3%, the company said.
Alain Bouchard, CEO and president, said that the result was “satisfying” given the pressure on gross fuel margins.
“We are evolving in a difficult economic situation but we continued to deliver solid sales and profitability indicators,” CFO Raymond Pare added.
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