Murphy USA’s net income for first-quarter 2023 was down compared to the year prior. The convenience-store chain on Tuesday reported a net income of $106.3 million for the first quarter of the year, compared to $152.4 million in first-quarter 2022.
In fuel, total retail gallons increased 4.9% in the first quarter compared to last year, while volumes on a same store sales basis increased 1.4%. Merchandise contribution dollars also increased, up 6.5% to $187.1 million for the first quarter.
- Murphy USA is No. 4 on CSP’s Top 40 update to the 2022 Top 202 ranking of U.S. c-store chains by total number of retail outlets.Watch for the full 2023 ranking in June.
Net income and adjusted EBITDA for the first quarter were lower versus the prior-year period due primarily to lower total fuel contribution and increases in store operating expenses, which were partially offset by higher overall merchandise contribution margins, Murphy USA said in its earnings report.
Total fuel contribution for the first quarter was 28.9 cents per gallon compared to 34 CPG in first-quarter 2022. Total store operating expenses were $15.6 million higher in first-quarter 2023 compared to the prior year, mainly due to employee related expenses, store maintenance costs and payment fees, Murphy USA reported.
“Murphy USA performance was exceptional during the first quarter, delivering results aligned with our high expectations and future value creation potential,” said President and CEO Andrew Clyde. “All-in fuel margins of 28.9 cents per gallon support our view of structurally higher industry margins and were complemented by continued volume growth and share gains. Strong fuel performance and robust customer traffic drove meaningful year-over-year growth inside the stores, translating to strong merchandise performance.”
As of March 31, the chain had 1,562 Murphy USA and Murphy Express stores and 158 QuickChek stores for a total of 1,720 stores. Murphy USA also had 11 stores under construction at the end of the first quarter.
El Dorado, Arkansas-based Murphy USA operates gas stations in 27 states primarily in the Southwest, Southeast, Midwest and Northeast. Most of Murphy USA's sites are located adjacent to Walmart stores.
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