The Canadian convenience-store operator Alimentation Couche-Tard on Monday posted a fourth-quarter profit that nearly doubled, as the company benefited from rising same-store merchandise sales and wider fuel margins even as fuel volumes slipped in its two largest markets.
The company reported a profit of $863.4 million, or 94 cents a share, for the quarter ended in April, up from $439.4 million, or 46 cents a share, in the same period a year earlier. The results included a $260.9 million pretax net recovery tied to certain long-standing legal matters, Couche-Tard said in a statement.
Stripping out one-time items, adjusted earnings came in at 73 cents a share, well above the 54 cents a share analysts polled by FactSet had expected.
Revenue rose to $19.49 billion from $16.27 billion, also beating the $18.51 billion consensus estimate.
Road transportation fuel revenue climbed to $14.8 billion from $11.95 billion, while service and merchandise revenue grew to $4.51 billion from $4.19 billion. The company’s road transportation fuel gross margin in the U.S. rose 9.17 cents to 52.44 cents per gallon, a key driver of the improved profit picture.
Same-store fuel volumes fell 2.1% in the U.S. and 4.4% in Europe and other regions, the company said, though they rose 2% in Canada.
On the merchandise side, consolidated same-store revenue increased 2.2%, lifted by a 3.4% gain in the U.S. and 1.1% growth in Europe and other regions. Same-store merchandise revenue slipped 0.9% in Canada.
Couche-Tard operates convenience stores across Canada, the U.S., Europe, and other international markets under banners including Circle K.