Arko Corp., the parent company of convenience-store retailer GPM Investments, had a net income of $14.1 million for second-quarter 2024, the company said Tuesday.
This was a slight dip compared to the second-quarter 2023 that had net income of $14.5 million. Results reflect recent acquisitions and higher fuel margin partially offsetting continued declines in gallon demand and lower same-store merchandise contribution, the company said.
On the company’s second-quarter earnings call, Arie Kotler, chairman, president and CEO of Arko Corp., also discussed the latest update on converting selected retail locations into dealer sites in order to enhance profitability.
“Our team has been working with multiple potential dealers over the last several months to advance this part of the transformation plan,” Kotler said. “We already have approximately 40 retail stores that we expect to have completed by the end of the third quarter. Several of these have already been converted.”
As for new store growth, Kotler said the company continues to see opportunity for expansion.
“We have three new-to-industry [NTI] stores that are in different stages of construction, with one scheduled top open in the third quarter.”
Arko delivered adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $83.8 million, down from second-quarter 2023 ($86.2 million), which was above the company’s previously issued guidance of $70 million to $77 million, driven by higher retail fuel margin per gallon.
For second-quarter 2024, retail fuel contribution increased $1.4 million to $118 million compared to the prior year period, with resilient fuel margin capture of 41.6 cents per gallon (CPG), an increase of 1.9 CPG compared to second-quarter 2023.
Merchandise sales were down by 2.1% to $474.2 million for second-quarter 2024 from second-quarter 2023.
“This quarter, we continued to navigate a challenging macroeconomic environment alongside our customers,” said Chairman, President and CEO Arie Kotler. “We continued to see pressure on consumers as they struggle with inflation and elevated prices for everyday goods, especially in markets with a large percentage of lower income consumers.”
- GPM Investments is No. 6 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count.
GPM Investments is a wholly owned subsidiary of Richmond, Virginia-based Arko Corp. It has more than 1,500 stores under more than 25 regional store brands, including Fas Mart, Li’l Cricket and Scotchman.
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