Canadian convenience store operator Alimentation Couche-Tard has reported a surge in quarterly net profit, reflecting the contribution of US chain Circle K, which was acquired in mid-December 2003.
The company said net earnings almost doubled to total C$51.0m (US$42.9m), or 49 cents per share, for the second quarter to 10 October, compared to $26.6m, or 30 cents per share, a year earlier. The company said the increase mainly reflected Circle K’s contribution and improved merchandise and service gross margins across the whole network.
Alain Bouchard, chairman, president and CEO said the company was satisfied with the progress of the Circle K integration.
“I would also mention that we are currently reviewing the Circle K stores’ product mix, including food services, which is expected to improve merchandise and service gross margins,” Bouchard added.
The company said some of its operations in Florida had suffered damage and losses as a result of a series of hurricanes during the second quarter. Losses, including damages relating to fixed assets and inventory spoilage, are estimated to result in net claims in the amount of US$17.5m.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“We estimate that the pre-tax negative impact resulting from the business interruption caused by the hurricanes amounted to approximately US$2.0m for the second quarter and we estimate that there will be a pre-tax negative impact of US$1.5m on our third quarter results,” the company said.
Second-quarter consolidated sales were C$2.39bn, compared with $937.5m for the year-ago quarter, including an increase of $1.34bn from Circle K. The company recorded 75.3% of its sales in the US, up from 43.2% in the second quarter of the previous year.
“We are confident we will achieve significant growth in the second half of this year. Our priorities are still the integration of Circle K and to gradually improve the product mix and food service offering in its stores. We will also further innovate to maintain an effective differentiation strategy and implement it network-wide,” Bouchard said.
“We continue to focus on seeking expansion opportunities, especially in our US markets which offer highly promising potential. We are maintaining the development objectives we announced for 2004-2005, which are to open more than 70 stores and 75 QSRs and to reconfigure 300 sites to the Store 2000 Concept,” he added.