Alimentation Couche-Tard reported net earnings of $834.1 million for the first quarter of its 2024 fiscal year, a period ending July 23. Net earnings are down $38.3 million compared to the same period the previous year.
Total merchandise and service revenues totaled $4.3 billion, an increase of 5.0% over the previous year. Same-store merchandise revenues increased by 2.1% in the United States, by 2.7% in Europe and other regions, and by 6.4% in Canada.
Same-store road transportation fuel volumes increased by 0.7% in the United States, by 7.2% in Canada, and decreased by 1.5% in Europe and other regions. Fuel gross margin averaged 50.05 cents per gallon in the United States, an increase of 1.05 cents over the previous year.
"Fuel margins remained healthy throughout the North American network," the company said, "due to favorable market conditions and the continued work on the optimization of the supply chain."
- Laval, Quebec-based Alimentation Couche-Tard is No. 2 on CSP’s 2023 Top 202 list of convenience-store chains by store count.
However, the retailer, which does business as Circle K in 25 countries and territories, said the highlight of the quarter was the growth of its Innercircle loyalty program, which it launched in June.
"Early in the summer, we went live with the program in nearly 430 stores across the Florida business unit," said President and Chief Executive Officer Brian Hannasch. Within three weeks, the program had wracked up more than 1.2 million members.
"Innercircle is a free membership program with fuel rewards, food rewards and much more, while also providing new personalized experiences to our loyal customers," Hannasch said. "We could not be more pleased with the rollout so far in terms of customer adoption, positive feedback and growing popularity of the app.
"We have just introduced Innercircle in one of our largest business units, Grand Canyon, and plan to expand to more business units, starting in the southeast of the United States, as the year progresses. ... This unique program [is] easier and more rewarding for our customers."
During the quarter, Couche-Tard completed the construction of 16 stores and the relocation or reconstruction of three stores, reaching a total of 19 stores since the beginning of fiscal 2024. As of July 23, another 45 stores were under construction and should open in the upcoming quarters.
Couche-Tard’s retail network includes more than 7,100 in the United States, primarily under the Circle K and Holiday Stationstores banners, and approximately 2,100 in Canada under the Circle K, Mac’s and Couche-Tard banners. In Europe, Couche-Tard operates a retail network in Scandinavia, Ireland, Poland, the Baltics and Russia with more than 2,700 stores and unmanned automated fuel stations. And under licensing agreements, more than 2,200 stores operate under the Circle K banner in 15 other countries and territories. This brings Couche-Tard’s total worldwide network to approximately 14,300 stores.
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