Canadian convenience store operator Couche-Tard saw its net earnings halve for the fourth quarter as a result of soaring fuel prices.
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For the 12-week period ended 27 April, net earnings were US$15.5m, compared with $33.4m last year.
The impact was a result of weak motor fuel margins in the US, expenses related to electronic payment modes and unfavourable economic conditions in the southern part of the US.
Revenues saw a robust increase of 24.7%, reaching $3.7bn helped by recent acquisitions, soaring gasoline prices and dollar exchange factors.
CEO Alain Bouchard described the past quarter as an “extremely challenging” period in the US.
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By GlobalData“We faced turbulence on several fronts, namely an economic slack in our southern divisions combined with motor fuel margins far below historical averages, compounded by electronic payment modes expenses exceeding the four cents per gallon average this quarter,” he added. “We expect to be fully prepared when better market conditions arise.”
