Net profit for Alimentation Couche-Tard in fiscal year 2019 increased 10 per cent to $2.35 billion from $2.18 billion last year. Revenues were up 15 per cent, to $77 billion from $67.2 billion in FY2018.
For the fourth quarter, profits dropped 25 per cent to $383.1 million.
Same-store merchandise revenues increased by 4.2 per cent in Canada, 3.4 per cent in the U.S. and by 4.7 per cent in Europe.
For the quarter, Couche-Tard surpassed its annual synergies run rate target of $281 million for CST Brands a year earlier than planned. CST Brands is a U.S. fuel and convenience retailer that Couche-Tard acquired in June 2018.
"We had a fantastic year in fiscal 2019, and I am immensely proud of the entire team for the work done in our stores and support offices. We had a record bottom-line, generated impressive cash flows, surpassed our CST synergies target and integrated Holiday into our network," said Couche-Tard president and CEO Brian Hannasch. Holiday Stationstores is a U.S. fuel and convenience retailer Couche-Tard acquired in 2017.
"During the quarter, we saw a good performance in same-store sales in all our geographies and good same-store gallons results in the U.S. despite fuel shortages in some regions. We continue to see traffic to site strengthening and I am particularly pleased with developments in our packaged and dispensed beverage categories.”
Hannasch noted “continued success” with the rollout of Couche-Tard’s new “Coffee on Demand” program in the U.S., the expansion of Polar Pop and Froster beverages in Canada, and increased interest in seasonal blends and limited-time-offers in Europe.
“The rollout of innovative products in tobacco and food helped improve merchandise revenues this quarter, and we also took part in new collaborations with our partners which are beginning to drive more traffic to our stores and excitement with our offerings," Hannasch said.
Couche-Tard says its rollout of the new Circle K brand in North America is progressing. As of April 28, 2019, more than 5,600 stores in North America, including approximately 720 stores acquired from CST, and more than 2,000 stores in Europe were displaying the company’s Circle K global brand.
On February 21 Couche-Tard announced a multi-year agreement with Canopy Growth Corporation allowing it to licence the "Tweed" trademark to cannabis retail store operations in Ontario. The first licensed store under this agreement was opened May 17.
Couche-Tard reports in U.S. dollars; all figures have been converted to Canadian dollars.