Couche-Tard feels the effects of COVID as fuel volumes drop

Alimentation Couche-Tard Inc. says its third-quarter revenues dropped nearly 21% as fuel volumes plunged 20% 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% 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% in Canada, 2.9% in the U.S. and 2.8% in Europe and other regions.

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