Alimentation Couche-Tard Inc. says lower gas prices and higher expenses ate into its bottom line in its fiscal first quarter.
The Laval, Que.-based convenience store giant reported net earnings of US$834.1 million, down from US$872.4 million a year earlier, while revenues fell 16.3 per cent to US$15.6 billion.
Total merchandise and service revenues rose by five per cent compared with a year earlier, while total road transportation fuel revenues sank 21.5 per cent to US$11.2 billion.
However, the volume of road transportation fuel sold rose in the first quarter, led by a 7.2 per cent same-store increase in Canada.
President and CEO Brian Hannasch told analysts that the company's Canadian operations led the way for a strong start to the convenience store giant's financial year.
RBC analyst Irene Nattel says in a note that strong North American fuel margins and a normalizing backdrop helped support the company's growth and cost initiatives.
This report by The Canadian Press was first published Sept. 7, 2023.
