US c-store retailer Casey’s General Stores has posted an increase in fourth-quarter profits, with the company insisting it had ended a year when it fought off a hostile takeover bid from Canadian rival Couche-Tard on a “strong” note.
Casey’s booked net earnings of US$22.8m for the three months to the end of April, up from US$21.9m a year earlier. Over the full year, Casey’s profits fell 19% to US$94.6m, although, when US$27.4m of costs linked to the takeover battle with Couche-Tard are excluded, the retailer’s earnings improved.
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In the fourth quarter and during the year, Casey’s revenue was up. In the last three months of the financial year, revenue rose 31.3% to US$1.55bn. Over the year, revenue was up 21.5% at US$5.64bn.
President and CEO Robert Myers said Casey’s had seen its gross profit rise “across all of our major categories” during the fourth quarter. He added: “Despite the challenges impacting our industry, we are optimistic about our ability to continue to drive shareholder value next fiscal year.”
As of April, Casey’s had 1,645 stores across the US. During the year, the retailer increased the number of stores it runs by nearly 7%, Myers noted. Earlier this month, the retailer struck a deal to buy 22 stores in Iowa from fellow c-store retailer Kum & Go. Myers said Casey’s had written deals to buy 33 additional stores.
