Couche-Tard booked an 81% increase in net earnings

Couche-Tard booked an 81% increase in net earnings

Canadian retailer Couche-Tard saw its shares climb today (13 July) after it reported a leap in fourth-quarter earnings.

The company booked an 81% increase in net earnings to US$68.8m for the 12 weeks to 25 April.

Higher fuel margins in the US, an increase in same-store merchandise sales in the US and Canada, the contribution of acquired stores and a lower income tax rate helped boost Couche-Tard's earnings, the company said.

Revenues rose by 33.7% to $4bn during the quarter, thanks mainly to higher motor fuel sales, the positive impact of foreign exchange, the contribution from acquisitions and same-store sales growth.

Same-store merchandise sales were up 3.2% in the US and up 6.9% in Canada.

"These performances were satisfactory considering the difficult economic context," Couche-Tard said.

Couche-Tard's shares on the Toronto Stock Exchange were up almost 4% at C$20.65 at 12:10 ET this afternoon.