It's growing... but read for yourself... $ATD (+1,48%)
Quarterly highlights
- Net income attributable to the Company's shareholders was $641.4 million for the third quarter of fiscal 2025 compared to $623.4 million for the third quarter of fiscal 2024. Adjusted net income attributable to the Company's shareholders was approximately $641.0 million compared to $625.0 million for the corresponding quarter last year, an increase of 2.6%.
- Net income attributable to the Company's shareholders was $0.68 per diluted share for the third quarter of fiscal 2025, compared to $0.65 per diluted share for the third quarter of fiscal 2024. Adjusted diluted net income per share was $0.68 , an increase of 4.6% compared to $0.65 in the corresponding quarter of the prior year.
- Total revenue from goods and services amounted to USD 5.3 billion , an increase of 5.0%. Comparable goods revenue decreased by 0.1 % in the US, while it increased by 0.2 % in Europe and other regions and by 2.8 % in Canada.
- The gross margin for goods and services rose by 0.9 % to 34.0 % in the USA, fell by 0.2 % to 39.0 % in Europe and other regions and fell by 1.8 % to 32.4 % in Canada.
- Fuel volumes for road transportation fell by 3.0 % in the USA and by 0.9 % in Europe and other regions, while they rose by 3.6 % in Canada.
- The gross margin for road transportation fuels was 44.28 cents per gallon in the US (an increase of 1.09 cents per gallon), 9.29 cents per gallon in Europe and other regions (an increase of 0.73 cents per gallon) and 13.54 cents per gallon in Canada (an increase of 0.55 cents per gallon).
Summary of the third quarter of the financial year 2025
For the third quarter ended February 2, 2025, Couche-Tard reported net income attributable to shareholders of the Company of $641.4 million, representing $0.68 per share on a diluted basis, compared to $623.4 million for the corresponding quarter of fiscal 2024, representing $0.65 per share on a diluted basis. Results for the third quarter of fiscal 2025 were impacted by pre-tax net foreign exchange gain of $12.3 million and pre-tax acquisition costs of $8.7 million. The results for the comparable quarter of financial year 2024 were impacted by a pre-tax acquisition cost of USD 5.6 million and a pre-tax net foreign exchange gain of USD 5.4 million. Excluding these items, adjusted net income attributable to the Company's shareholders was approximately $641.0 million, or $0.68 per share on a diluted basis for the third quarter of fiscal 2025, compared to $625.0 million, or $0.65 per share on a diluted basis for the corresponding quarter of fiscal 2024. This represents an increase in adjusted diluted net income per share of 4.6% . This increase is primarily due to higher on-road fuel gross margin, the contribution from acquisitions, organic growth in our convenience businesses and the positive impact of the share repurchase program, partially offset by the impact of strategic investments on operating expenses and depreciation and amortization. All financial information presented is in US dollars unless otherwise stated.
Key items for the third quarter of the 2025 financial year
- Approximately one year after the acquisition of certain European retail assets from TotalEnergies, our annual operating cost synergies reached approximately EUR 13.0 million ( USD 14.0 million ) as of February 2, 2025. The synergies are on track and are expected to reach EUR 120.0 million ( USD 127.0 million ) in financial year 2027 and EUR 170.0 million ( USD 179.0 million ) in financial year 2029. These synergies should lead to a reduction in operating, selling, general and administrative expenses and an increase in revenue through the implementation of the Group's best practices in operations, customer offerings and concepts.
Further changes to our network in the third quarter of financial year 2025
- We acquired 38 company-owned stores, including 20 Hutch's branded stores in the US states of Oklahoma and Kansas and 15 stores in the Netherlands . This means that we have acquired a total of 40 company-owned stores through various transactions since the beginning of the 2025 financial year. We have completed these transactions with our available cash.
- We have completed the construction of 31 stores and the relocation or conversion of 8 stores and now have a total of 69 stores since the beginning of the 2025 financial year. As at February 2, 2025, a further 56 stores were under construction and are scheduled to open in the coming quarters.
Revenue
Our revenue totaled USD 20.9 billion in the third quarter of fiscal 2025, an increase of USD 1.3 billion, or 6.5%, compared to the corresponding quarter of fiscal 2024, primarily due to the contribution from acquisitions and higher sales in our wholesale fuel business, partially offset by a lower average selling price for on-road fuel, weak fuel demand and traffic impacts from the unusual winter conditions in the United States, as well as the net negative impact of approximately USD 212.0 million from the translation of our foreign currency transactions into US dollars.
In the first three quarters of financial year 2025, our revenue increased by USD 4.9 billion or 9.5 % compared to the same period in financial year 2024, mainly due to similar factors as in the third quarter. The translation of our foreign currency transactions into US dollars had a negative net effect of around USD 204.0 million on our revenue.
Revenue from goods and services
Total revenue from goods and services for the third quarter of financial year 2025 amounted to USD 5.3 billion, an increase of USD 253.0 million compared to the corresponding quarter of financial year 2024. The translation of our foreign currency transactions into US dollars had a net negative effect of approximately USD 42.0 million. The remaining increase of approximately USD 295.0 million or 5.9% is mainly due to the contribution from acquisitions of approximately USD 248.0 million and organic growth. Comparable merchandise sales decreased by 0.1% in the United States as many regions were affected by unusual winter conditions and customers remained cautious in their spending. Comparable merchandise revenue increased 0.2% in Europe and other regions, supported by cigarette sales in the Netherlands as new legislation was favorable to our industry, partially offset by the category's continued struggles in Asia due to tax increases. In Canada, comparable store merchandise sales increased by 2.8%, driven by strong growth in the alcohol category. This was partially offset by a decline in sales of other nicotine products, both of which were also due to new legislation.
In the first three quarters of financial year 2025, growth in trade and service sales amounted to USD 743.4 million or 5.5 % compared to the corresponding period in financial year 2024. The translation of our foreign currency transactions into US dollars had a negative net effect of approximately USD 57.0 million . Comparable store sales decreased by 0.9 % in the US, 1.0 % in Europe and other regions and 1.0 % in Canada.
Revenue from road transportation fuels
Total revenue from road transportation fuels amounted to USD 15.4 billion in the third quarter of financial year 2025 , an increase of USD 1.1 billion compared to the corresponding quarter of financial year 2024. The translation of our foreign currency transactions into US dollars had a net negative effect of approximately USD 164.0 million . The remaining increase of approximately USD 1.3 billion or 8.7% is mainly due to the contribution from acquisitions of approximately USD 2.0 billion and higher revenues from our European wholesale activities as a result of a change in our business model. This increase was partially offset by a lower average selling price for road transportation fuels, which had a negative impact of approximately USD 906.0 million, and weak fuel demand. Fuel volumes for road transportation in the USA fell by 3.0% on a comparable basis. This was due to unusual winter conditions and lower traffic volumes in regions where we have a strong presence. In Europe and other regions, fuel volumes for road transportation fell by 0.9 % on a like-for-like basis, while in Canada they rose by 3.6 % .
In the first three quarters of financial year 2025, revenue from the road transportation fuel business increased by USD 4.2 billion or 11.2% compared to the same period in financial year 2024. The translation of our foreign currency transactions into US dollars had a negative net effect of approximately USD 144.0 million . Fuel volumes for road transportation in comparable stores decreased by 2.1 % in the USA, by 0.8 % in Europe and other regions and increased by 0.9 % in Canada.
Other revenue
Total other income for the third quarter of financial year 2025 amounted to USD 192.2 million, a decrease of USD 57.2 million compared to the corresponding quarter of financial year 2024. The translation of our foreign currency transactions into US dollars had a net negative effect of approximately USD 5.0 million. The remaining decrease of approximately USD 52.0 million, or 20.9%, is mainly due to lower revenues from our heating oil and marine fuel products as a result of lower demand, partially offset by the contribution from acquisitions of approximately USD 14.0 million.
In the first three quarters of financial year 2025, other income totalled USD 454.7 million, a decrease of USD 62.8 million or 12.1 % compared to the same period in financial year 2024. The translation of our foreign currency transactions into US dollars had a negative net effect of approximately USD 3.0 million .
Gross profit
Our gross profit amounted to USD 3.8 billion in the third quarter of the 2025 financial year. This represents an increase of USD 322.7 million, or 9.4%, compared to the corresponding quarter of financial year 2024, mainly due to the contribution from acquisitions, a higher gross margin in Road Freight and improved gross margins in Goods and Services , partially offset by weak fuel demand in the US. The translation of our foreign currency transactions into US dollars had a negative net effect of around USD 32.0 million .
In the first three quarters of fiscal 2025, our gross profit increased by USD 771.9 million, or 8.3%, compared to the first three quarters of fiscal 2024, primarily due to similar factors as in the third quarter. The translation of our foreign currency transactions into US dollars had a negative net effect of around USD 37.0 million.
Gross profit from goods and services
In the third quarter of financial year 2025, our gross profit from goods and services amounted to USD 1.8 billion, an increase of USD 118.0 million compared to the corresponding quarter of financial year 2024. The translation of our foreign currency transactions into US dollars had a negative net effect of approximately USD 16.0 million. The remaining increase of approximately USD 134.0 million or 7.8% is mainly due to the contribution from acquisitions of approximately USD 89.0 million and an improved gross margin from goods and services in the US. Our gross margin from goods and services increased by 0.9% to 34.0% in the USA due to improved delivery conditions, while it fell by 0.2% to 39.0% in Europe and other regions. Our gross margin in the goods and services segment fell by 1.8% to 32.4% in Canada. This is due to a change in the product mix, as the new alcohol sales have a lower margin than the other nicotine products that are no longer sold in our stores.
In the first three quarters of financial year 2025, our gross profit from goods and services amounted to USD 4.9 billion, an increase of USD 270.9 million compared to the first three quarters of financial year 2024. The translation of our foreign currency transactions into US dollars had a negative net effect of around USD 21.0 million . Our gross margin from goods and services declined by 0.2% to 33.8% in the USA, by 0.3% to 39.0% in Europe and other regions and by 0.2% to 33.6% in Canada.
Gross profit from road transportation fuels
In the third quarter of financial year 2025, our gross profit from road transportation fuels amounted to USD 1.9 billion, an increase of USD 188.5 million compared to the corresponding quarter of financial year 2024. The translation of our foreign currency transactions into US dollars had a negative net effect of approximately USD 16.0 million. The remaining increase of USD 204.0 million, or 12.2%, was mainly due to the contribution from acquisitions of approximately USD 122.0 million and an improved gross margin for road transportation fuels1 in all regions, partially offset by weak fuel demand and traffic in the US due to unusual winter conditions. In the U.S., our on-road fuel gross margin was 44.28 cents per gallon (an increase of 1.09 cents per gallon), in Europe and other regions it was 9.29 U.S. cents per liter (an increase of 0.73 U.S. cents per liter) and in Canada it was 13.54 CA cents per liter (an increase of 0.55 CA cents per liter). Fuel margins remained healthy across our network thanks to the continued optimization of our supply chain and strong execution in our stores. In Europe and other regions, the gross margin for road fuels was also negatively impacted by a change in our wholesale activities.
In the first three quarters of financial year 2025, our gross profit from road transportation fuels was USD 5.0 billion, an increase of USD 458.7 million compared to the first three quarters of financial year 2024. The translation of our foreign currency operations into US dollars had a net negative impact of approximately USD 16.0 million . The gross margin for transportation fuels1 was 46.02 cents per gallon in the US, 9.48 cents per gallon in Europe and other regions and 13.35 cents per gallon in Canada .
Other income Gross profit
In the third quarter of financial year 2025, gross profit from other income amounted to USD 69.8 million, an increase of USD 16.2 million or 30.2 % compared to the corresponding quarter of financial year 2024, mainly due to the contribution from acquisitions of approximately USD 12.0 million . The translation of our foreign currency transactions into US dollars had a negative net effect of around USD 1.0 million on gross profit from other income.
In the first three quarters of financial year 2025, gross profit from other income amounted to USD 166.3 million, an increase of USD 42.3 million or 34.1% compared to the same period in financial year 2024. The translation of our foreign currency transactions into US dollars had a negative impact of around USD 1.0 million on gross profit from other income.
Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA ") and adjusted EBITDA
In the third quarter of financial year 2025, EBITDA amounted to USD 1.6 billion, an increase of USD 164.0 million or 11.2% compared to the corresponding quarter of financial year 2024. Adjusted EBITDA for the third quarter of financial year 2025 increased by USD 167.1 million, or 11.3%, compared to the corresponding quarter of financial year 2024, mainly due to the higher gross margin for road transportation fuels, the contribution from acquisitions of approximately USD 104.0 million and organic growth in our convenience business, partially offset by weak fuel demand. The translation of our foreign currency transactions into US dollars had a negative net effect of approximately USD 12.0 million.
For the first three quarters of FY 2025, EBITDA amounted to USD 4.7 billion, an increase of USD 277.0 million, or 6.2%, compared to the first three quarters of FY 2024. Adjusted EBITDA for the first three quarters of FY 2025 increased by USD 276.4 million, or 6.2%, compared to the first three quarters of FY 2024, primarily due to the contribution from acquisitions of approx. 389.0 million and a higher gross margin for road transportation fuels in Europe and other regions, partially offset by a lower gross margin for road transportation fuels in the United States and a slowdown in traffic and fuel demand as low-income consumers were impacted by challenging economic conditions. The translation of our foreign currency transactions into US dollars had a net negative effect of approximately USD 15.0 million.
Depreciation, amortization and impairment ("depreciation")
In the third quarter of financial year 2025, our depreciation and amortization expenses increased by USD 118.7 million, or 22.1%, compared to the third quarter of financial year 2024. This is primarily due to the impact of capital expenditures related to business acquisitions of approximately USD 70.0 million, equipment replacements and ongoing improvements to our network. The translation of our foreign currency transactions into US dollars had a positive net effect of around USD 6.0 million on depreciation and amortization.
In the first three quarters of financial year 2025, our depreciation and amortization expenses increased by USD 297.0 million compared to the first three quarters of financial year 2024. The translation of our foreign currency transactions into US dollars had a positive net effect of around USD 6.0 million. The remaining increase of USD 303.0 million or 23.9 % is mainly due to similar factors as in the third quarter.
Income taxes
The income tax rate for the third quarter was 21.0% compared to 22.0% for the corresponding quarter of financial year 2024. The income tax rate for the first three quarters of financial year 2025 was 22.6%, similar to the corresponding period of financial year 2024. The decrease in the third quarter of financial year 2025 is mainly due to the impact of a different composition of our income in the various jurisdictions in which we operate.
Net profit attributable to shareholders of the company and adjusted net profit attributable to shareholders of the company
Net income attributable to shareholders of the Company amounted to USD 641.4 million in the third quarter of financial year 2025 compared to USD 623.4 million in the third quarter of financial year 2024. This represents an increase of USD 18.0 million or 2.9 %. Diluted net earnings per share amounted to USD 0.68, compared to USD 0.65 in the same quarter of the previous year. The translation of our foreign currency transactions into US dollars had a negative net effect of around USD 6.0 million on the net profit attributable to the shareholders of the company in the third quarter of financial year 2025.
Adjusted net income attributable to the shareholders of the Company amounted to approximately USD 641.0 million in the third quarter of financial year 2025 compared to USD 625.0 million in the third quarter of financial year 2024. This corresponds to an increase of USD 16.0 million or 2.6 %. Adjusted diluted net earnings per share amounted to USD 0.68 in the third quarter of the 2025 financial year, compared to USD 0.65 in the corresponding quarter of the 2024 financial year. This corresponds to an increase of 4.6 %.
In the first three quarters of financial year 2025, net income attributable to the company's shareholders amounted to USD 2.1 billion, a decrease of USD 135.7 million or 6.0 % compared to the first three quarters of financial year 2024. Diluted net income per share amounted to USD 2.25 compared to USD 2.35 in the corresponding period of financial year 2024. The translation of our foreign currency operations into US dollars had a net negative impact of approximately USD 8.0 million on net income attributable to the Company's shareholders for the first three quarters of financial year 2025.
Adjusted net income attributable to shareholders of the Company for the first three quarters of fiscal 2025 amounted to USD 2.1 billion, a decrease of USD 119.0 million, or 5.3 %, compared to the first three quarters of fiscal 2024. Adjusted diluted net income per share amounted to USD 2.25 for the first three quarters of fiscal 2025, compared to USD 2.32 for the first three quarters of fiscal 2024, a decrease of 3.0 %.
Dividends
During its meeting on March 18, 2025, the Board of Directors announced a quarterly dividend of 19.5 CA cents per share for the third quarter of the 2025 financial year to shareholders of record on March 27, 2025 and approved its payment effective April 10, 2025.
Alex Miller, President and Chief Executive Officer said: "We are pleased to report positive business improvements this quarter. While consumers continue to be cautious in their spending, we are seeing encouraging signs of resilience. Comparable store sales were positive in both Canada and Europe compared to the prior year quarter, and we saw sequential improvement in the U.S., but were impacted by historic winter storms in our southern businesses. The grocery sector continued to grow in the US as our menu deal promotions performed well and were extended to Canada. In our fuel business, we are maintaining our market share in the US and our margins are in line with recent quarters. With inflationary pressures continuing, our top priority is to win our customers by offering them the products and services they want at a compelling price."
Filipe Da Silva , Chief Financial Officer added: "We made remarkable progress this quarter, delivering our strongest performance improvement in over a year as we continue to navigate challenging consumer trends, particularly in the United States. Our results reflect a balanced mix of organic growth and acquisitions and demonstrate the strength of our globally diversified network, the success of our integration activities and our commitment to long-term, sustainable growth. This quarter also marks the first anniversary of the acquisition of certain TotalEnergies assets. TotalEnergies is on track to realize synergies and continues to deliver solid results thanks to the dedicated efforts of all our team members."
Source: newswire.ca
