US c-store operator Casey’s General Stores, which spent the summer fighting a takeover bid from Canada-based rival Couche-Tard, has seen the battle hit second-quarter profits.
Casey’s yesterday (7 December) posted net earnings of US$21.7m and earnings per share of $0.51 for the three months to 31 October – compared to $33.6m and $0.66 a year earlier.
The retailer said the second-quarter figures included $19.4m in costs incurred from its defence of Couche-Tard’s advances, including a move to recapitalise the business. Excluding these costs, Casey’s said its earnings per share would have reached $0.81, up 22.7% on the year.
Casey’s second-quarter revenue was up 16.8% at $1.35bn on the back of higher fuel, grocery and prepared food sales.
“We are pleased with the second quarter results driven by strong sales increases across all categories,” said Casey’s president and CEO Robert Myers. “We expect additional revenue growth as we close on more acquisitions during the third quarter.”
Casey’s expects its acquisition of 44 Kabredlo’s outlets to close this month.
Casey’s shares closed up 0.6% at $41.39 on the NASDAQ yesterday.
Click here for the full quarterly statement from Casey’s.