ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR 2025
LAVAL, QC, June 25, 2025 /PRNewswire/ - Alimentation Couche-Tard Inc. ("Couche-Tard" or the "Corporation") (TSX: ATD) announces its results for its fourth quarter ended April 27, 2025.
Executive Comments on the Quarter
Alex Miller, President and Chief Executive Officer, said: "As we conclude this milestone year, the 45th year since we opened our first store, we are proud of the resilience of our business and the award-winning engagement of our team members. During the fourth quarter, in the face of difficult economic and geopolitical conditions, we held the line in same-store sales in the United States and had strong positive results in Canada and Europe. Our initiatives to provide compelling value to our customers with exclusive food and beverage offers are performing well across the network. Compared to the same period last year, in our fuel business, we had positive volumes in Canada, and in the United States, we maintained market share and margins aligned with recent quarters. As we move into the new fiscal year, we remain confident in the strength of our global scale, long-term strategy, and customer-centric teams."
Filipe Da Silva, Chief Financial Officer, added: "We closed the fourth quarter and fiscal year with disciplined financial results that reflect the strength and operational effectiveness of our business, supported by continued investment in technology and customer value. The integration of our TotalEnergies assets progressed according to plan, and our focus on efficiency enabled us to pursue strategic initiatives while preserving healthy margins. As we enter the new fiscal year, we remain focused on controlling costs, delivering shareholder value, and making impactful capital investments to support our long-term growth agenda."
Quarterly Highlights
Net earnings attributable to shareholders of the Corporation were $439.4 million for the fourth quarter of fiscal 2025 compared with $453.0 million for the fourth quarter of fiscal 2024. Adjusted net earnings attributable to shareholders of the Corporation1 were approximately $441.0 million compared with $461.0 million for the corresponding quarter of last year, representing a decrease of 4.3%.
Net earnings attributable to shareholders of the Corporation were $0.46 per diluted share for the fourth quarter of fiscal 2025 compared with $0.47 per diluted share for the fourth quarter of fiscal 2024. Adjusted diluted net earnings per share1 were $0.46, representing a decrease of 4.2% from $0.48 for the corresponding quarter of last year.
Total merchandise and service revenues of $4.2 billion, an increase of 2.0%. Same-store merchandise revenues2 decreased by 0.4% in the United States, while it increased by 3.4% in Europe and other regions1, and by 3.5% in Canada.
Merchandise and service gross margin1 decreased by 0.2% in the United States to 33.9%, by 0.6% in Europe and other regions to 38.6%, and by 0.8% in Canada to 34.1%.
Same-store road transportation fuel volumes decreased by 1.9% in the United States, by 0.6% in Europe and other regions, while it increased by 3.7% in Canada.
Road transportation fuel gross margin1 of 43.27¢ per gallon in the United States, an increase of 4.48¢ per gallon, US 9.57¢ per liter in Europe and other regions, an increase of US 1.27¢ per liter, and CA 14.05¢ per liter in Canada, an increase of CA 0.37¢ per liter.
__________
1
Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS® Accounting Standards.
2
This measure represents the growth of (decrease in) cumulative merchandise revenues between the current period and comparative period for those stores that were open for at least 23 days out of every 28-day period included in the reported periods. Merchandise revenues are defined as Merchandise and service revenues excluding service revenues.
Fiscal Year 2025 Highlights
Net earnings per diluted share of $2.71 compared with $2.82 for fiscal 2024, a decrease of 3.9%, while adjusted diluted net earnings per share1 were $2.71 compared with $2.81 for fiscal 2024, a decrease of 3.6%.
During fiscal 2025, we repurchased 8.7 million shares for an amount of $518.9 million.
Solid pipeline execution with 97 new-to-industry openings, and 20 relocated or reconstructed stores during fiscal 2025. As of April 27, 2025, another 41 stores were under construction and should open in the upcoming quarters.
Increase in the annual dividend declared for fiscal 2025 of 14.3%, from CA 66.50¢ to CA 76.00¢.
Summary of the Fourth Quarter of Fiscal 2025
For its fourth quarter ended April 27, 2025, Couche-Tard reported net earnings attributable to shareholders of the Corporation of $439.4 million, representing $0.46 per share on a diluted basis, compared with $453.0 million for the corresponding quarter of fiscal 2024, representing $0.47 per share on a diluted basis. The results for the fourth quarter of fiscal 2025 were affected by a pre-tax net foreign exchange gain of $7.1 million and by pre-tax acquisition costs of $6.7 million. The results for the comparable quarter of fiscal 2024 were affected by a pre-tax net foreign exchange loss of $5.2 million, and by pre-tax acquisition costs of $4.8 million. Excluding these items, the adjusted net earnings attributable to shareholders of the Corporation3 were approximately $441.0 million, or $0.46 per share on a diluted basis for the fourth quarter of fiscal 2025, compared with $461.0 million, or $0.48 per share on a diluted basis for the corresponding quarter of fiscal 2024, a decrease of 4.2% in the adjusted diluted net earnings per share1. This decrease is primarily driven by higher quarterly income tax rate on net earnings and the impact of strategic investments on operating expenses and depreciation, partly offset by a significant improvement in the road transportation fuel gross margin1. All financial information presented is in US dollars unless stated otherwise.
__________
1
Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards.
Significant Items of the Fourth Quarter of Fiscal 2025
Subsequent to the end of the fourth quarter of fiscal 2025, our commercial paper program was amended and the aggregate principal amount of unsecured commercial paper notes outstanding at any given time was increased to an amount that cannot exceed $3.5 billion.
On June 2, 2025, subsequent to the end of the fourth quarter of fiscal 2025, we fully repaid, upon maturity, our CA $700.0 million Canadian-dollar-denominated senior unsecured notes issued on June 2, 2015. The repayment of CA $700.0 million ($507.0 million) was settled using our available cash and existing credit facilities, including our United States commercial paper program. On the same date, we also settled the cross-currency interest rate swaps associated with the notes.
Changes in our Network during the Fourth Quarter of Fiscal 2025
We acquired two company-operated stores and settled these transactions using our available cash.
We completed the construction of 41 stores and the relocation or reconstruction of 7 stores, reaching a total of 117 stores since the beginning of fiscal 2025. As of April 27, 2025, another 41 stores were under construction and should open in the upcoming quarters.
The following tables present certain information regarding changes in our store network over the 12 and 52-week periods ended April 27, 2025(1):
12-week period ended April 27, 2025
Type of site
Company-operated
CODO
DODO
Franchised and
other affiliated
Total
Number of sites, beginning of period
10,467
1,392
1,435
1,186
14,480
Acquisitions
2
—
—
—
2
Openings / constructions / additions
41
3
11
4
59
Closures / disposals / withdrawals
(24)
(2)
(20)
(18)
(64)
Store conversions
1
(7)
(2)
8
—
Number of sites, end of period
10,487
1,386
1,424
1,180
14,477
Circle K branded sites under licensing agreements
2,474
Total network
16,951
Number of automated fuel stations included in the period-end
figures
1,172
—
107
—
1,279
52-week period ended April 27, 2025
Type of site
Company-operated
CODO
DODO
Franchised and other affiliated
Total
Number of sites, beginning of period
10,445
1,409
1,464
1,227
14,545
Acquisitions
42
—
—
—
42
Openings / constructions / additions
97
7
34
30
168
Closures / disposals / withdrawals
(115)
(9)
(67)
(87)
(278)
Store conversions
18
(21)
(7)
10
—
Number of sites, end of period
10,487
1,386
1,424
1,180
14,477
Circle K branded sites under licensing agreements
2,474
Total network
16,951
(1)
Stores which are part of Circle K Belgium SA's network are included at 100%, while stores operated through our RDK joint venture are included at 50%.
Exchange Rate Data
We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in the United States.
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
12-week periods ended
52-week periods ended
April 27, 2025
April 28, 2024
April 27, 2025
April 28, 2024
Average for the period(1)
Canadian dollar
0.7020
0.7369
0.7175
0.7406
Norwegian krone
0.0923
0.0937
0.0920
0.0938
Swedish krone
0.0973
0.0949
0.0946
0.0940
Danish krone
0.1444
0.1448
0.1443
0.1452
Zloty
0.2564
0.2505
0.2521
0.2447
Euro
1.0782
1.0798
1.0772
1.0828
Hong Kong dollar
0.1286
0.1278
0.1284
0.1278
(1)
Calculated by taking the average of the closing exchange rates of each day in the applicable period.
For the analysis of consolidated results, the impact of the translation of our foreign currency operations into US dollars is defined as the impact from the translation of our Canadian, European, Asian, and corporate operations into US dollars. Variances of our foreign currency operations into US dollars are determined as being the difference between the corresponding period results in local currencies translated at the current period average exchange rate and the corresponding period results in local currencies translated at the corresponding period average exchange rate.
Summary Analysis of Consolidated Results for the Fourth Quarter and Fiscal 2025
The following table highlights certain information regarding our operations for the 12 and 52-week periods ended April 27, 2025 and April 28, 2024, and the results analysis in this section should be read in conjunction with this table. The results from our operations in Europe and Asia are presented together as Europe and other regions.
12-week periods ended
52-week periods ended
(in millions of US dollars, unless otherwise stated)
April 27,
2025
April 28,
2024
Variation
%
April 27,
2025
April 28,
2024
Variation
%
Statement of Operations Data:
Merchandise and service revenues(1):
United States
2,842.9
2,823.2
0.7
12,407.3
12,334.5
0.6
Europe and other regions
844.2
769.9
9.7
3,602.7
2,750.3
31.0
Canada
499.7
513.6
(2.7)
2,349.4
2,451.1
(4.1)
Total merchandise and service revenues
4,186.8
4,106.7
2.0
18,359.4
17,535.9
4.7
Road transportation fuel revenues:
United States
6,502.4
7,208.5
(9.8)
29,141.9
31,531.1
(7.6)
Europe and other regions
4,278.8
4,811.7
(11.1)
19,139.5
13,581.1
40.9
Canada
1,164.5
1,278.9
(8.9)
5,623.3
5,911.0
(4.9)
Total road transportation fuel revenues
11,945.7
13,299.1
(10.2)
53,904.7
51,023.2
5.6
Other revenues(2):
United States
11.4
16.9
(32.5)
48.0
45.6
5.3
Europe and other regions
118.6
161.9
(26.7)
510.6
622.9
(18.0)
Canada
8.0
8.1
(1.2)
34.1
35.9
(5.0)
Total other revenues
138.0
186.9
(26.2)
592.7
704.4
(15.9)
Total revenues
16,270.5
17,592.7
(7.5)
72,856.8
69,263.5
5.2
Merchandise and service gross profit(1)(3):
United States
962.8
961.8
0.1
4,200.1
4,192.6
0.2
Europe and other regions
326.1
301.5
8.2
1,401.9
1,079.3
29.9
Canada
170.6
179.2
(4.8)
791.3
833.5
(5.1)
Total merchandise and service gross profit
1,459.5
1,442.5
1.2
6,393.3
6,105.4
4.7
Road transportation fuel gross profit(3):
United States
911.5
821.7
10.9
4,165.2
4,152.5
0.3
Europe and other regions
393.6
342.1
15.1
1,701.1
1,103.7
54.1
Canada
124.2
123.6
0.5
551.2
560.7
(1.7)
Total road transportation fuel gross profit
1,429.3
1,287.4
11.0
6,417.5
5,816.9
10.3
Other revenues gross profit(2)(3):
United States
11.4
10.3
10.7
41.8
39.0
7.2
Europe and other regions
25.8
34.3
(24.8)
137.7
106.5
29.3
Canada
7.0
7.0
—
31.0
30.1
3.0
Total other revenues gross profit
44.2
51.6
(14.3)
210.5
175.6
19.9
Total gross profit(3)
2,933.0
2,781.5
5.4
13,021.3
12,097.9
7.6
Operating, selling, general and administrative expenses
1,724.8
1,642.5
5.0
7,143.2
6,525.2
9.5
Loss (gain) on disposal of property and equipment and other assets
6.3
4.3
46.5
(33.4)
2.4
(1,491.7)
Depreciation, amortization and impairment
540.8
492.5
9.8
2,105.4
1,760.1
19.6
Operating income
661.1
642.2
2.9
3,806.1
3,810.2
(0.1)
Net financial expenses
120.0
139.9
(14.2)
512.5
387.9
32.1
Net earnings
442.3
454.5
(2.7)
2,592.4
2,732.2
(5.1)
Less: Net earnings attributable to non-controlling interests
(2.9)
(1.5)
93.3
(12.0)
(2.5)
380.0
Net earnings attributable to shareholders of the Corporation
439.4
453.0
(3.0)
2,580.4
2,729.7
(5.5)
Per Share Data:
Basic net earnings per share (dollars per share)
0.46
0.47
(2.1)
2.72
2.82
(3.5)
Diluted net earnings per share (dollars per share)
0.46
0.47
(2.1)
2.71
2.82
(3.9)
Adjusted diluted net earnings per share (dollars per share)(3)
0.46
0.48
(4.2)
2.71
2.81
(3.6)
12-week periods ended
52-week periods ended
(in millions of US dollars, unless otherwise stated)
April 27,
2025
April 28,
2024
Variation
%
April 27,
2025
April 28,
2024
Variation
%
Other Operating Data:
Merchandise and service gross margin(1)(3):
Consolidated
34.9 %
35.1 %
(0.2)
34.8 %
34.8 %
—
United States
33.9 %
34.1 %
(0.2)
33.9 %
34.0 %
(0.1)
Europe and other regions
38.6 %
39.2 %
(0.6)
38.9 %
39.2 %
(0.3)
Canada
34.1 %
34.9 %
(0.8)
33.7 %
34.0 %
(0.3)
Growth of (decrease in) same-store merchandise revenues(4):
