Total Q2 Revenue At Alimentation Couche-Tard Down Slightly
Second quarter merchandise and service revenues at Alimentation Couche-Tard Inc. rose slightly as growth in the company’s U.S. and Europe/Other Regions divisions offset losses in Canada.
For the 12 week period ended October 15, company-wide revenue was $4.1 billion, an increase of 1% when compared to the same quarter the previous year. By division, sales in the U.S. were up 1.2%, in Europe/Other Divisions were up 3.6%, and down 1.9% in Canada.
Same-store merchandise revenues decreased by 0.1% in the United States, by 0.2% in Europe/Other Regions, and increased by 1.6% in Canada.
Total revenue for the quarter was $16.4 billion, down 2.7% year-over-year. Company officials said the decline in total revenue was attributable to a lower average road transportation fuel selling price, lower aviation fuel volume sold as a result of a change in business model as well as lower road transportation fuel demand.
"We are pleased to announce a solid second quarter with good progress across most of our key metrics, although we did see softening in same store sales in the U.S., driven by weakness in the cigarette category and cycled against a robust second quarter, up 5.6%, last year,” said Brian Hannasch, president and CEO of Alimentation Couche-Tard, the parent company of Circle-K. “In an environment with continued inflation and high interest rates, we remain committed to offering compelling value and ease.”
During the quarter, Hannasch said the company expanded the rollout of its Inner Circle membership program, which is now in seven U.S. business units covering close to 3,000 locations with more than 2.7 million fully enrolled.
“As America's Thirst Stop, we are focused on the growth of our beverage category by offering great assortment, innovation and value in both packaged and dispensed beverages at affordable price points. We also continue to be pleased with the performance of our fuel business, in terms of both volumes and margins, as we continue to bring traffic to our sites through recurring promotional Fuel Days," he said.
In the beginning of November, the company closed on the acquisition of 112 MAPCO sites, accelerating its development in key markets in Alabama, Georgia, Kentucky, Mississippi and Tennessee.