Shares in Canadian forecourt and convenience retailer Couche-Tard fell yesterday (30 August) despite the company booking an increase in first-quarter profits.
Couche-Tard posted a 10% rise in quarterly net profit to US$139.5m but missed market estimates due to higher motor fuel prices, sending its shares down 5.51%. The company recorded EPS of $0.75 versus analyst forecasts of $0.78.
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Operating profit in the period ended 17 July climbed 5.2% to $182.2m, while sales in the quarter amounted to $5.17bn, a 23.9% increase on the prior-year period.
Same-store merchandise revenues increased by 1.5% in the US but dropped by 0.2% in Canada as a result of poor weather conditions.
“I am pleased to announce that our results are on the rise despite the obstacles we are facing, namely rising motor fuel prices, a still fragile economic environment, adverse weather conditions and a highly competitive environment”, said Couche-Tard CEO and president Alain Bouchard.
For the remainder of fiscal 2012, the company said it expects to “pursue its investments with caution” in order to improve its network.
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By GlobalDataThe firm however, said it is “well-positioned to realise acquisitions and create value”.
