Couche-Tard feel the effects of COVID as North American fuel volumes drop 20% in Q3

LAVAL, Que. — Alimentation Couche-Tard Inc. says its third-quarter revenues dropped nearly 21 per cent as fuel volumes plunged 20 per cent in North America during COVID-19.

The Quebec-based convenience store operator says revenues decreased to US$13.16 billion from US$16.6 billion in the third quarter of 2019.

Its net income attributable to shareholders was US$607.5 million, a decrease of 7.9 per cent from US$659.9 million a year earlier when it benefited from the sale of its interests in CrossAmerica Partners LP.

Adjusted profits for the three months ended Jan. 31 increased to US$622 million or 56 cents per diluted share, up from US$581 million or 52 cents per share a year earlier.

Couche-Tard was expected to report 56 cents per share in adjusted profits on US$13.74 billion of revenues, according the financial data firm Refinitiv.

The company said the pandemic continues to have a “meaningful impact” on results as traffic remained soft due to increased lockdowns and people continuing to work from home.

“One year after the start of the COVID-19 pandemic, I am pleased to report that across our global network we had solid third quarter results,” stated CEO Brian Hannasch.

Same-store merchandise sales grew 4.7 per cent in Canada, 2.9 per cent in the U.S. and 2.8 per cent in Europe and other regions.

However, same-store fuel sales dropped 3.1 per cent in Canada, 0.8 per cent in Europe and other regions and increased 0.1 per cent in the U.S.

This report by The Canadian Press was first published March 17, 2021.

Companies in this story: (TSX:ATD.B)

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