Second trimester | Alimentation Couche-Tard records a drop in profits

(Laval) Alimentation Couche-Tard reported a profit attributable to shareholders of US708.8 million in the second quarter.

This represents a decline of 13.5% from profits of US$819.2 million a year earlier.

The Laval company also announced, Monday after the close of the stock markets, that its total turnover amounted to 17.4 billion US dollars, up 6% compared to 16.4 billion US dollars.

Earnings per diluted share were 75 US cents, down from 85 US cents in the same quarter last year.

The company notably attributed the drop in adjusted net profit to a lower gross margin on road transportation fuel in the United States, as well as weaker consumer demand.

Same-store road transportation fuel volumes decreased by 2.2% in the United States, affected by a drop in demand in the industry and two major hurricanes affecting the southeastern region of the country.

Fuel volumes, however, increased 0.5% in Canada and 0.1% in Europe and other regions.

“Although a portion of our convenience and fuel sales activities continued to be tested during the quarter as consumers continue to carefully monitor their spending, we remain confident in the benefits of our diversified network globally and our long-term strategic growth plan,” said President and CEO Alex Miller in a statement.

“In our European markets, positive results were obtained in most categories as well as for fuel volumes in Europe and Canada. Fuel margins also remained strong across our network,” he added.