LAVAL, QC, March 20, 2024 /PRNewswire/ – For its third quarter ended February 4, 2024, Alimentation Couche-Tard Inc. (“Couche-Tard” or the “Company”) (TSX: ATD) announces its net source of income attributable to consistent percentage holders of the Company of $623. 4 million, or $0. 65 consistent percentage on a diluted basis, compared to $737. 4 million for the corresponding quarter of fiscal 2023, or $0. 73 consistent with the consistent percentage on a diluted basis. a diluted base. Third quarter fiscal 2024 results were impacted by pre-tax acquisition prices of $5. 6 million and a pre-tax net foreign exchange gain of $5. 4 million. Comparable quarter fiscal 2023 results were impacted by pre-tax acquisition pricing of $2. 7 million and a pre-tax net foreign exchange loss of $1. 6 million. Excluding those items, adjusted net source of income attributable to the Company’s shareholders1 amounted to approximately $625. 0 million, or $0. 65 consistent with the percentage on a diluted basis, for the third quarter of fiscal 2024, compared to $741. 0 million, or $0. 74 consistent. on a consistent percentage basis on a diluted basis, for the third quarter of fiscal year 2024. corresponding quarter of fiscal year 2023, a 12. 2% reduction in diluted net income source consistent with adjusted percentage1. This reduction is mainly explained by the drop in the gross margin for road transportation fuel1 in the United States and the weakness of traffic while some of our consumers continue to be affected by a difficult economic situation, partially offset by the favorable effect. of the consistent percentage buyback program and acquisition contribution, which amounted to approximately $27. 0 million. All monetary data presented are in US dollars unless otherwise indicated.
__________________________
1 See the “Non-IFRS Accounting Measures section” for more information on the functionality measures explained through IFRS® accounting standards.
2 This measure represents the expansion (decrease) in cumulative product gain between existing and comparative eras for retail outlets that were open for at least 23 days in each 28-day era included in the reported eras. Commodity profits are explained as products and benefits of the service.
“While we continue to face short-term obstacles, especially in the U. S. , we continue to face short-term obstacles. “In the U. S. , we remain focused on offering price and ease to our consumers through an evolving array of personal tag options, the continued launch of our Inner Circle loyalty program, and recurring Fuel Day. promotions. ” All of these offers offer meaningful rewards and wonderful prices, especially for our cash-strapped consumers. However, as our business is incredibly diversified around the world, we are very pleased with the demonstrated resilience and continuity of our innovation strategy. through building on our key themes of differentiation with our consumers and maximizing the benefits of our scale,” said Brian Hannasch, President and CEO of Alimentation Couche-Tard.
“We are pleased this quarter with the significant expansion of our network. In January, we finalized the acquisition of certain European advertising assets from TotalEnergies and welcomed four new countries, approximately 22,000 team members, and 2,175 sites to the Couche-Tard family. We have a strong track record of successful integrations and synergies and are pleased with the progress of the transition. We’ve met local leaders, opened our first Circle K brand location in Berlin, and are working intensively with our new but highly committed teams. We are also making progress on the integration of our 112 MAPCO sites and continue to expand our portfolio of new advertising sites,” Hannasch concluded.
Filipe Da Silva, Chief Financial Officer, added, “Our commitment to disciplined control of operating costs has led to a normalized expense reduction1 of 1. 6%, particularly higher than the inflation-weighted average return impacting our business operations. During the quarter, it underscored our commitment to monetary prudence and operational excellence, even in the face of broad-based economic challenges. One of the highlights of our capital distribution projects this quarter was the issuance of C$5 million in new unsecured notes over five years. At the end of the quarter, we also valued U. S. dollar and euro-denominated private debt offerings, achieving combined totals of $1. 5 billion and €1. 35 billion, respectively, in various tranches. These monetary moves conscientiously planned our capital design and put us on track to successfully execute our 10 strategy to win. “
The Company announced today that Daniel Rabinowicz has made the decision to resign from the Company’s Board of Directors effective March 20, 2024. “On behalf of the Board of Directors, I would like to thank Daniel for his immeasurable contributions to Couche-Tard, his tenure of more than 10 years, joining as a member of the Human Resources and Corporate Governance Committee. The company has benefited greatly from his extensive experience and knowledge, and we wish him the best of luck in his retirement,” said Alain Bouchard, Founder and Executive Chairman of the Board of Management of Alimentation Couche-Tard.
Fiscal Third Quarter 2024 Highlights
________________________
1 See the “Non-IFRS Accounting Measures section” for more information on the functionality measures explained through IFRS accounting standards.
Acquisition of certain European advertising assets from TotalEnergies SE
Other adjustments to our network in the 3rd quarter of fiscal year 2024
________________________
1 Expected synergies constitute forward-looking data and are intended to illustrate the expected incremental benefits of those transactions. They might not be suitable for other needs. For more information, please see the “Forward-Looking Statements” section.
Overview of settings in our store network.
The following table presents certain data related to the evolution of our store network during the 16-week period ended February 4, 2024(1):
16 weeks ended February 4, 2024
Site Type
Operated through the company.
DACO
DODO
Franchisee &
Other Affiliates
In general
Number of sites, start of period
9 938
336
793
1 254
12 321
Procurement
538
1 083
683
–
2 304
Openings / Constructions / Extensions
sixteen
–
9
19
44
Closings / Disposals / Withdrawals
(30)
(1)
(9)
(34)
(74)
In-store conversions
1
(3)
–
2
–
Number of sites, end of period.
10 463
1 415
1 476
1 241
14 595
Circle K Branded Site Licensing Agreements
2 120
Total Network
16 715
Number of automated service stations included at the end of the period
Figures
1 175
–
84
–
1 259
(1)
Stores that are part of the Circle K Belgium SA network are included at 100%, while outlets operated through our joint venture RDK are included at 50%.
Exchange data
We use the U. S. dollar as the reporting currency, which provides more applicable data given the dominance of our U. S. operations.
The following table provides data on final exchange rates expressed in U. S. dollars consistent with the comparative currency unit:
Completed 16-week periods
Full 40-week periods.
February 4, 2024
January 29, 2023
February 4, 2024
January 29, 2023
Period 1)
Canadian Dollar
0,7375
0. 7388
0,7418
0,7577
Norwegian krone
0,0934
0,0991
0,0938
0,1005
Swedish Krona
0,0949
0,0942
0,0937
0,0959
Danish krone
0,1451
0,1394
0,1453
0,1386
Zloty
0,2470
0,2201
0,2431
0,2189
euro
1,0824
1,0368
1,0837
1. 0307
Hong Kong Dollar
0,1280
0,1279
0,1278
0,1276
(1)
Calculated by taking the average of the day’s final exchange rates for the applicable period.
For the purposes of the consolidated effects study, the effect of the translation of our foreign currency operations into U. S. dollars is explained as the effect of the translation of our Canadian, European, Asian and corporate operations into U. S. dollars. Differences in our foreign currency transactions in U. S. dollars are determined as the difference between the effects of the corresponding era in local currencies converted at the average exchange rate of the existing era and the effects of the corresponding era in local currencies converted at the average exchange rate of the corresponding era.
Summary Analysis of Consolidated Results for the Third Quarter and First Three Quarters of Fiscal Year 2024
The table below highlights safe data related to our operations for the 16- and 40-week periods ended February 4, 2024 and January 29, 2023, and the investigation of effects in this segment should be read in conjunction with this table. The effects of our operations in Europe and Asia are presented combined under the heading Europe and other regions.
Full 16-week periods.
Full 40-week periods.
(Millions of U. S. dollars, unless otherwise noted)
February 4
2024
January 29
2023
Variation
%
February 4
2024
January 29
2023
Variation
%
Transaction Status Data:
Goods & Revenue(1):
Usa
3 569,3
3 541,6
0,8
9 511,3
9 349,5
1. 7
Europe & Regions
787,5
713. 0
10. 4
1 980,4
1 801,0
10,0
Canada
682,8
706. 6
(3. 4)
1 937,5
1 955,0
(0,9)
Total revenue from products and services
5 039,6
4 961,2
1. 6
13 429,2
13 105,5
2. 5
Revenue from road transport:
Usa
8 737,7
9 411,5
(7. 2)
24 322,6
27 328,9
(11. 0)
Europe & Regions
3 918,5
3 475,5
12. 7
8 769,4
9 288,9
(5. 6)
Canada
1 676,8
1 828,2
(8. 3)
4 632,1
4 943,1
(6. 3)
Total fuel revenue from road transport
14 333,0
14 715,2
(2. 6)
37 724,1
41 560,9
(9. 2)
Other income(2):
Usa
11. 0
14. 2
(22,5)
28,7
32. 4
(11. 4)
Europe & Regions
227,5
343. 2
(33,7)
461,0
859,3
(46. 4)
Canada
10. 9
21. 3
(48,8)
27,8
34. 2
(18. 7)
Total Other Income
249,4
378,7
(34. 1)
517,5
925,9
(44. 1)
Total Revenue
19 622,0
20 055,1
(2. 2)
51 670,8
55 592,3
(7. 1)
Merchandise & Gross Margin(1)(3):
Usa
1 179,8
1 175,5
0,4
3 230,8
3 148,3
2. 6
Europe & Regions
309,0
266. 1
16. 1
777,8
685,9
13. 4
Canada
233,5
228. 2
2. 3
654,3
642. 1
1. 9
Total gross profit from goods and services
1 722,3
1 669,8
3. 1
4 662,9
4 476,3
4. 2
Gross margin on transport fuels(3):
Usa
1 191,8
1 265,9
(5. 9)
3 330,8
3 355,3
(0,7)
Europe & Regions
311. 2
252,8
23. 1
761,6
775,3
(1. 8)
Canada
162,6
163,5
(0,6)
437. 1
420,8
3. 9
Total gross profit from road transport fuels
1 665,6
1 682,2
(1,0)
4 529,5
4 551,4
(0,5)
Gross Revenue Margin(2)(3):
Usa
11. 0
14. 2
(22,5)
28,7
32. 4
(11. 4)
Europe & Regions
33. 3
23. 6
41. 1
72. 2
61,8
16,8
Canada
9. 3
10. 7
(13. 1)
23. 1
21. 6
6. 9
Total Gross Profit from Revenue
53,6
48,5
10. 5
124,0
115,8
7. 1
Total Gross Profit (3)
3 441,5
3 400,5
1. 2
9 316,4
9 143,5
1. 9
Operating, selling and administrative expenses.
1 975,3
1 916,1
3. 1
4 882,7
4 747,2
2. 9
Loss (gain) on disposal of property, plant and apparatus and assets
1. 4
(4. 9)
(128,6)
(1. 9)
(38. 3)
(95,0)
Depreciation, amortization and depreciation
537,5
463. 2
16,0
1 267,6
1 136,3
11. 6
Operating income
927. 3
1 026,1
(9. 6)
3 168,0
3 298,3
(4. 0)
Net Finance Costs
130,3
82,5
57,9
248,0
207,7
19. 4
Net Profit
624,4
737,4
(15. 3)
2. 277,7
2 420,2
(5. 9)
Net source of income attributable to non-controlling interests
(1,0)
–
(100,0)
(1,0)
–
(100,0)
Net income attributable to the Company’s shareholders
623,4
737,4
(15. 5)
2 276,7
2 420,2
(5. 9)
Data consistent with participation:
Consistent Base Earnings with Consistent Percentage (Consistent Percent Dollars)
0,65
0,73
(11. 0)
2,35
2,38
(1. 3)
Consistent Percent Diluted Earnings (Consistent Percent Dollars)
0,65
0,73
(11. 0)
2,35
2,38
(1. 3)
Consistent Percentage Adjusted Diluted Earnings (in consistent U. S. dollars with consistent percentage) (3)
0,65
0,74
(12. 2)
2. 32
2. 41
(3. 7)
Full 16-week periods.
Full 40-week periods.
(Millions of U. S. dollars, unless otherwise noted)
February 4
2024
January 29
2023
Variation
%
February 4
2024
January 29
2023
Variation
%
Other information:
Merchandise & Gross Margin(1)(3):
Consolidated
34,2 %
33,7%
0,5
34,7%
34,2 %
0,5
Usa
33,1%
33,2%
(0,1)
34,0%
33,7%
0,3
Europe & Regions
39,2%
37,3%
1. 9
39,3%
38,1%
1. 2
Canada
34,2 %
32,3%
1. 9
33,8 %
32,8%
1. 0
Same-store sales expansion (decrease)(4):
United States(5)(6)
(1,5 %)
4,8%
-%
4,6%
Europe & Regions(3)(7)
(0,3 %)
3,5 %
0,7%
3,1%
Canada(5)(6)
(1,2 %)
2,3%
2,1%
(0,1 %)
Gross margin on transport fuels(3):
U. S. (cents per gallon)
43. 19
46,85
(7. 8)
47. 22
48. 21
(2. 1)
Europe & Regions (cents per litre)
8. 56
8. 01
6. 9
8,94
9,79
(8. 7)
Canada (CA cents per litre)
12,99
12. 52
3. 8
13. 27
12,96
2. 4
Total volume of road transport fuel sold:
United States (million gallons)
2 759,2
2 702,2
2. 1
7 053,6
6 959,4
1. 4
Europe & Regions (million litres)
3 634,8
3 157,0
15. 1
8 520,3
7 922,0
7. 6
Canada (million litres)
1 696,9
1 769,0
(4. 1)
4 439,4
4 286,5
3. 6
Fuel volumes for same-store transport (decrease)(5):
Usa
(0,8 %)
(2,3 %)
(0,6 %)
(2,7 %)
Europe & Regions(7)
(1,9 %)
(1,2 %)
(1,5 %)
(3,5 %)
Canada
0,2 %
0,5 %
3,1%
(1,8 %)
(Millions of U. S. dollars, unless otherwise noted)
Effective February 4, 2024
As in
April 30, 2023(8)
Variation
$
Balance sheet data:
Total assets
36 243,6
29 058,4
7 185,2
Interest-bearing debt(3)
14 690,6
9 473,6
5 217,0
Shareholders of the Company
13 299,5
12 564,5
735,0
Debt-to-equity ratios (3):
Net interest-bearing debt/total capitalization
0,51 : 1
0,41 : 1
Leverage Ratio
2. 19 : 1
1,50 : 1
Returns (3):
Return on equity
23,2%
24,7%
Return on invested capital
14,9%
17,5%
(1)
It includes earnings from franchise fees, royalties, vendor rebates on certain purchases made through franchisees and licensees, and wholesale merchandise. Franchise rates for authorized retail outlets worldwide are presented in the United States.
(2)
Includes income from asset leases and sale of aviation fuel and desk engines.
(3)
Please refer to the “Non-IFRS Accounting Measures” segment for more information on our non-IFRS functionality measures as well as our capital control measure.
(4)
This measure represents the expansion (decrease) in cumulative product gain between the existing era and the comparative era for retail outlets that were open for at least 23 days in each 28-day era included in the reported eras. Commodity profits are explained as products. and service benefits service benefits.
(5)
For company-operated retail establishments only.
(6)
Calculated on the basis of the respective currencies.
(7)
The expansion (decrease) of same-store product profits and the expansion (decrease) of same-store trucking fuel volume for Europe and other regions come with the effects of the acquisition of certain European retail assets from TotalEnergies SE.
(8)
Data as of April 30, 2023 has been adjusted based on our final estimates of the fair price of the acquired assets and liabilities assumed for the acquisition of True Blue Car Wash LLC.
Gain
Our revenue was $19. 6 billion for the third quarter of fiscal 2024, a low of $433. 1 million, a low of 2. 2% compared to the corresponding quarter of fiscal 2023, primarily due to a low in the average advertising value of trucking fuel, a minimization of the volume of aviation fuel sold as a result of a change in business model, as well as low traffic, as a portion of our consumers are impacted by difficult economic conditions, while partially offset by the contribution of acquisitions and The net positive impact represented approximately $144. 0 million from the conversion of our foreign transactions into U. S. dollars.
During the first three quarters of fiscal 2024, our revenue decreased by $3. 9 billion, or 7. 1%, compared to the same period in fiscal 2023, primarily due to a reduction in the average advertising value of trucking fuel, a reduction in volume. of aviation fuel sold due to a change in business model, while partially offset by the contribution of acquisitions and the net positive effect of approximately $128. 0 million from the translation of our foreign currency operations into U. S. dollars.
Merchandise & Revenue
Total product and services earnings for the third quarter of fiscal 2024 were $5. 0 billion, an increase of $78. 4 million compared to the corresponding quarter of fiscal 2023. The conversion of our foreign currency operations into U. S. dollars had a net positive effect of approximately $16. 0 million. The remainder of the accrual of approximately $62. 0 million, or 1. 2%, is primarily attributable to the contribution of acquisitions, which amounted to approximately $167. 0 million, partially offset by a decrease in traffic. Same-store earnings declined 1. 5% in the U. S. The U. S. , 0. 3% in Europe and other regions[5] and 1. 2% in Canada, all have an effect through discretionary spending constraints due to challenging economic conditions, as well as a decline in the number of cigarettes, partially offset by the expansion of other tobacco products.
During the first 3 quarters of fiscal 2024, product and services earnings growth was $323. 7 million compared to the corresponding period of fiscal 2023. The conversion of our foreign currency operations into U. S. dollars had a net negative effect of approximately $2. 0 million. Same-store product sales were flat in the U. S. In the U. S. , they increased by 0. 7% in Europe and other regions1 and by 2. 1% in Canada.
________________________
1 See the “Non-IFRS Accounting Measures section” for more information on the functionality measures explained through IFRS accounting standards.
Fuel revenue from road transport
Total trucking fuel revenue for the third quarter of fiscal 2024 was $14. 3 billion, a reduction of $382. 2 million compared to the same quarter in fiscal 2023. The translation of our foreign currency operations into U. S. dollars had a net positive effect of approximately $116. 0 million. The remaining cut of approximately $498. 0 million, or 3. 4%, was due to a cut in the average sales value of trucking fuel, which had a negative effect of approximately $1. 4 billion, and low traffic, partially offset. through the contribution of acquisitions, which amounted to approximately $1. 1 billion. Comparable volumes of fuel for road transport declined by 0. 8% in the United States and by 1. 9% in Europe and other regions. During the quarter, fuel demand continued to have an adverse effect through macroeconomic challenges. The volume of motor transport fuel in the same shops by road increased by 0. 2% in Canada.
During the first three quarters of fiscal year 2024, trucking fuel revenue decreased by $3. 8 billion compared to the same period in fiscal 2023. The conversion of our foreign currency operations into U. S. dollars had a net positive effect of approximately $98. 0 million. Comparable trucking fuel volumes decreased 0. 6% in the United States, 1. 5% in Europe and other regions, and increased 3. 1% in Canada.
The table below shows the average sales value of trucking fuel from our company-owned retail stores in our markets over the past eight quarters. The average sales value of road transport fuel is made up of road transport fuel revenue divided by the volume of road transport fuel. Transport Fuel Sold:
Fourth
4 ??
1??
2 hours?
3 ??
Average Weight
53 weeks ended February 4, 2024
United States (U. S. consistent with gallons)
3. 52
3. 52
3,76
3. 18
3. 47
Europe & Regions (US cents per litre)
109,77
98. 02
108,87
112,53
107,97
Canada (CA cents per litre)
137,66
142,77
152. 03
136,26
141,83
52 weeks ended January 29, 2023
United States (U. S. consistent with gallons)
3,94
4. 61
3,84
3,50
3,94
Europe & Regions (US cents per litre)
120,84
129. 11
117,39
113,55
121. 16
Canada (CA cents per litre)
150:30
179,15
149,55
143,32
154,70
Other Income
Total other income for the third quarter of fiscal 2024 was $249. 4 million, a low of $129. 3 million compared to the corresponding quarter of fiscal 2023. The translation of our foreign currency operations into U. S. dollars had a net positive effect of approximately $13. 0 million. The remaining cut of approximately $142. 0 million, or 37. 5%, is primarily due to minimizing the volume of aviation fuel sold due to an update in business style and minimizing the average selling costs of our other fuel products, which had a minimal impact on gross margin1.
During the first 3 quarters of fiscal 2024, total other revenue amounted to $517. 5 million, a low of $408. 4 million compared to the corresponding period of fiscal 2023. The conversion of our foreign currency operations into U. S. dollars had a net positive effect of approximately $32. 0 million. The remaining reduction of approximately $440. 0 million, or 47. 5%, is primarily due to points similar to those in the third quarter.
Gross Profit1
Our gross profit was $3. 4 billion for the third quarter of fiscal 2024, an increase of $41. 0 million, or 1. 2%, compared to the corresponding quarter of fiscal 2023, primarily due to the contribution of acquisitions as well as positive net income. an effect of our foreign currency translation to the U. S. dollar of approximately $12. 0 million, partially offset by a decrease in gross profit from trucking fuel and low traffic.
For the first 3 quarters of fiscal 2024, our gross profit increased by $172. 9 million, or 1. 9%, compared to the first 3 quarters of fiscal 2023, primarily due to the contribution of acquisitions, biological expansion in our convenience store business, and the positive effect. Net effect. The net effect of the translation of our foreign exchange transactions into U. S. dollars is approximately $3. 0 million, partially offset by lower gross margins on road transportation fuel1.
Gross profit from goods and services
Gross profit from our products and services for the third quarter of fiscal 2024 was $1. 7 billion, an increase of $52. 5 million compared to the same quarter in fiscal 2023. The conversion of our foreign currency operations into U. S. dollars had a net positive effect. of approximately $5. 0 million. The accrual balance of approximately $48. 0 million, or 2. 9%, is primarily attributable to the contribution of acquisitions, which amounted to approximately $75. 0 million, although partially offset by low traffic. Our gross margin of products and services1 decreased 0. 1% in the U. S. to 33. 1%, increased 1. 9% in Canada to 34. 2%, primarily due to tariff initiatives, and increased 1. 9% in Europe and other regions to 39. 2%, primarily due to an update in the product mix.
During the first 3 quarters of fiscal 2024, gross profit from our products and services was $4. 7 billion, an increase of $186. 6 million compared to the first 3 quarters of fiscal 2023. The conversion of our operations in foreign currency to US dollars had a negative net effect. Gross margin on our products and services1 increased 0. 3% to 34. 0% in the US, 1. 2% in Europe and other regions to 39. 3% and 1. 0% in Canada up to 33. 8%.
________________________
1 See the “Non-IFRS Accounting Measures section” for more information on the functionality measures explained through IFRS accounting standards.
Gross profit from road transport fuels
In the third quarter of fiscal 2024, our gross margin on highway transportation fuels was $1. 7 billion, down $16. 6 million compared to the corresponding quarter of fiscal 2023. The conversion of our transactions in foreign currency to US dollars had a positive net effect. of approximately $7. 0. million. The remaining cut of approximately $24. 0 million, or 1. 4%, is primarily due to the gross margin reduction in highway transportation fuel1 in the United States, partially offset by the effect of a series of acquisitions amounting to approximately $83. 0 million. In the United States, our gross margin on trucking fuel1 was CA43. 19¢ per gallon, a low of 3. 66¢ per gallon, primarily due to volatility in the global fuel market, while in CanadaArray it was of CA12. 99¢ per gallon. per liter, an increase of CA0. 47¢ per liter. In Europe and other regions, our gross margin on road fuel1 was 8. 56¢ per liter, an increase of 0. 55¢ per liter. Despite the slight decrease from previous levels, fuel gross margins1 remained healthy across our network.
For the first 3 quarters of fiscal 2024, our gross profit from trucking fuel was $4. 5 billion, a decrease of $21. 9 million compared to the first 3 quarters of fiscal 2023. The conversion of our foreign currency transactions into U. S. dollars had a net positive effect. Gross margin for trucking fuel1 was 47. 22 cents per gallon in the U. S. In the U. S. , 8. 94 cents per liter in Europe and other regions, and C13. 27 cents per liter in Canada.
Gross margin1 on trucking fuel from our company-owned retail stores in the U. S. The U. S. Securities and Exchange Rate and the effect of spending similar to electronic payment strategies over the past eight quarters are as follows:
(U. S. cents per gallon)
Fourth
4 ??
1??
2 hours?
3 ??
Average Weight
53 weeks ended February 4, 2024
Before deduction of expenses similar to electronic payment methods
46,43
51,26
51,15
44,38
48. 02
Charges similar to electronic payment methods(1)
6. 17
6. 13
6. 04
5,77
6. 01
After deducting expenses similar to electronic payment methods
40. 26
45. 13
45. 11
38,61
42. 01
52 weeks ended January 29, 2023
Before deduction of expenses similar to electronic payment methods
47,55
50,95
51. 11
48,39
49:45
Charges similar to electronic payment methods(1)
6. 61
7. 21
6. 53
6:20 am
6. 61
After deducting expenses similar to electronic payment methods
40,94
43,74
44,58
42. 19
42,84
(1)
Expenses similar to electronic payment strategies are decided by allocating the portion of the overall electronic payment strategies, which is included in the operating, selling, general and administrative expenses, which are considered similar to the trucking fuel transactions of our corporate retail outlets in the United States.
The gross margin1 on road transportation fuel for our network in Europe and other regions, as well as in Canada, over the last 8 quarters is as follows:
Fourth
4 ??
1??
2 hours?
3 ??
Average Weight
53 weeks ended February 4, 2024
Europe & Regions (US cents per litre)
10:60 a. m.
8. 21
10:20 a. m.
8. 56
09:31
Canada (CA cents per litre)
12. 13
13:25
13. 63
12,99
12,99
52 weeks ended January 29, 2023
Europe & Regions (US cents per litre)
7. 51
12. 26
9. 76
8. 01
9. 23
Canada (CA cents per litre)
13. 41
14. 04
12:55 PM
12. 52
13. 05
Generally speaking, fuel margins for trucking can be volatile from quarter to quarter, but they tend to be stronger over longer periods. In Europe and other regions, the volatility of fuel margins is impacted through a longer chain of origin due to increased onboarding. model. In Europe and other regions, as well as Canada, spending on electronic payment strategies is not as volatile as in the United States.
Gross Revenue Margin
For the third quarter and first 3 quarters of fiscal 2024, other gross cash benefits were $53. 6 million and $124. 0 million, an increase of $5. 1 million and $8. 2 million, respectively, compared to the corresponding periods of fiscal 2023. The translation of our U. S. dollar foreign currency operations had no effect on gross profit for the third quarter and first three quarters of fiscal 2024.
Operating, Selling, and Administrative Expenses (“Expenses”)
For the third quarter and first three quarters of fiscal 2024, expenses increased 3. 1% and 2. 9%, respectively, compared to the corresponding periods of fiscal 2023. The normalised reduction in expenditure[7] by 1. 6% and the normalised expansion in expenditure by 1 0. 9%, respectively, as shown in the table below:
Full 16-week periods.
Full 40-week periods.
February 4, 2024
January 29, 2023
February 4, 2024
January 29, 2023
Growth in expenses, as shown.
3,1%
6,4%
2,9%
7,9%
Adjusted by:
Increase in other procurement-related expenses
(4,8 %)
(0,9 %)
(2,9 %)
(0,9 %)
Decrease (increase) similar to the evolution of electronic payments, procurement rates
0,7%
(0,8 %)
1,0 %
(2,1 %)
(Increase) minimize the net effect of foreign currency translation
(0,4 %)
3. 1%
–
2,9%
Increase in acquisition price adjustments identified in profit or loss
(0,2 %)
–
(0,1 %)
(0,1 %)
Normalized growth (decline) in expenditure 1
(1,6 %)
7,8%
0,9%
7,7%
The normalized expense minimization1 for the third quarter of fiscal 2024 is primarily due to ongoing strategic efforts to control our expenses, adding power to the workforce in our stores. Our expense control is evidenced through our normalized expense minimization1, as disciplined control of charges more than offset inflationary pressures, will have a similar effect on prices as the minimum wage increase, as well as increased investments to support our strategic initiatives.
The normalized expense expansion1 for the first 3 quarters of fiscal 2024 was primarily due to the effect of pricing similar to the minimum wage increase, inflationary pressures, and increased investments to support our strategic initiatives, while partially offset by ongoing strategic efforts to control our expenses, adding the power of paints in our stores. Our expense control is reflected in our normalized expense expansion1 which remains below the average inflation seen across all of our net paints.
Earnings, Interest, Taxes, Depreciation & Amortization (“EBITDA1”) and Adjusted EBITDA1
During the third quarter of fiscal 2024, EBITDA amounted to $1. 5 billion, a decrease of $21. 4 million, or 1. 4%, compared to the corresponding quarter of fiscal 2023. Adjusted EBITDA for the third quarter of fiscal 2024 decreased to $18. 5 million, or 1. 2%. compared to the corresponding quarter of fiscal 2023, primarily due to minimizing gross margin1 similar to trucking fuel and low traffic, with a portion of our consumers impacted by difficult economic conditions, while partially offset by the contribution of acquisitions, which amounted to approximately $65. 0 million, a reduction in expenses, as well as the translation of our foreign currency operations into U. S. dollars, which had a net positive effect of approximately $6. 0 million.
EBITDA for the first 3 quarters of fiscal 2024 was $4. 5 billion, an increase of $15. 0 million, or 0. 3%, compared to the first 3 quarters of fiscal 2023. Adjusted EBITDA for the first 3 quarters of fiscal 2024 increased to $19. 1 million, or 0. 4%, compared to the first 3 quarters of fiscal 2023, primarily due to the contribution of acquisitions as well as biological expansion in our convenience store business, partially offset through a reduction in the gross margin of trucking fuel1. Our U. S. dollar foreign currency operations had a net positive impact of approximately $2. 0 million.
Depreciation, amortization and depreciation (“impairments”)
For the third quarter of fiscal 2024, our depreciation and amortization expense increased by $74. 3 million compared to the third quarter of fiscal 2023. The conversion of our foreign currency transactions into U. S. dollars had no effect on depreciation. The increase is mainly due to the impact of investments made through acquisitions, replacement of equipment and the continuous improvement of our network.
During the first 3 quarters of fiscal 2024, our depreciation and amortization expense increased by $131. 3 million compared to the first 3 quarters of fiscal 2023. The conversion of our foreign currency operations into U. S. dollars had a favorable net effect of approximately $2. 0 million. The remaining accrual of approximately $133. 0 million, or 11. 7%, was primarily due to similar third-quarter points, partially offset by the effect of the impairment of our investment in Fire.
________________________
1 See the “Non-IFRS Accounting Measures section” for more information on the functionality measures explained through IFRS accounting standards.
Net Finance Costs
Net monetary expenses for the third quarter and first 3 quarters of fiscal 2024 were $130. 3 million and $248. 0 million, respectively, an increase of $47. 8 million and $40. 3 million, respectively, compared to the corresponding periods of fiscal 2023. Some of the variation is explained through safe pieces that are not indicative of long-term trends, as shown in the table below:
Completed 16-week periods
Full 40-week periods.
(millions of U. S. dollars)
February 4, 2024
January 29, 2023
Variation
February 4, 2024
January 29, 2023
Variation
Reported Financial Costs
130,3
82,5
47,8
248,0
207,7
40. 3
Explained by:
Net foreign exchange (loss)
5. 4
(1. 6)
7. 0
11. 4
(1. 1)
12,5
Fair exchange of monetary instruments and amortization of deferred differences
–
(0,1)
0,1
(11. 8)
0,9
(12. 7)
Reclassification Adjustment for Profit on Deferred Interest Rate Swaps
–
–
–
32,9
–
32,9
Remaining Change
135,7
80,8
54,9
280,5
207,5
73,0
The remaining variance in the third quarter and first 3 quarters of fiscal year 2024 is primarily due to the accumulation of average short- and long-term debt similar to our recent acquisitions, as well as higher interest rates, partially offset by higher interest income.
Income Taxes
The income tax rate for the third quarter and first 3 quarters of FY 2024 was 22. 0% and 22. 6%, respectively, compared to 21. 9% for the corresponding periods of FY 2023. These increases were primarily due to the effect on another combination of our earnings in the various jurisdictions in which we operate.
Net income attributable to the Company’s shareholders and adjusted income attributable to the Company’s shareholders1
Net earnings attributable to the Company’s shareholders for the third quarter of fiscal 2024 were $623. 4 million, compared to $737. 4 million for the third quarter of fiscal 2023, a cut of $114. 0 million, or 15. 5%. It was $0. 65, compared to $0. 73 for the same quarter last year. The translation of our foreign exchange transactions into U. S. dollars had a net positive effect of approximately $5. 0 million on net earnings attributable to the Company’s shareholders for the third quarter. of fiscal year 2024.
Adjusted net income attributable to the Company’s shareholders for the third quarter of fiscal 2024 was approximately $625. 0 million, to $741. 0 million for the third quarter of fiscal 2023, a low of $116. 0 million, or 15. 7%. Adjusted diluted net earnings consistent with participation1 were $0. 65 for the third quarter of fiscal 2024, to $0. 74 for the same quarter of fiscal 2023, a low of 12. 2%.
During the first 3 quarters of fiscal 2024, net earnings attributable to the Company’s shareholders were $2. 3 billion, a low of $143. 5 million, or 5. 9%, compared to the first 3 quarters of fiscal 2023. They were $2. 35, compared to $2. 38 last fiscal year. The translation of our foreign exchange transactions into U. S. dollars had a net positive effect of approximately $5. 0 million on net earnings attributable to the Company’s shareholders during the first 3 quarters of fiscal year 2024.
Adjusted net earnings attributable to the Company’s shareholders for the first 3 quarters of fiscal 2024 were $2. 3 billion, a low of $199. 0 million, or 8. 1%, compared to the first 3 quarters of fiscal 2023. Adjusted diluted net earnings per share1 were $2. 32. for the first 3 quarters of FY 2024, at $2. 41 for the first 3 quarters of FY 2023, a minimum of 3. 7%.
Dividends
At its March 20, 2024 meeting, the Board of Directors declared a quarterly dividend of CA17. 5¢ consistent with the constant percentage for the third quarter of fiscal year 2024 to holders of percentages of record on April 1, 2024 and approved its payment effective April 15. , 2024. This is an eligible dividend under the Income Tax Act (Canada).
________________________
1 See the “Non-IFRS Accounting Measures section” for more information on the functionality measures explained through IFRS accounting standards.
Non-IFRS Accounting Standards Measures
In order to provide further information to assess the functionality of the Company, the monetary information included in our financial documents includes secure information that is not a measure of functionality under IFRS® accounting criteria issued by the International Accounting Standards Board (“IFRS Accounting Standards”), which is also calculated on an adjusted basis to exclude express items. These functionality measures are referred to as “Non-IFRS Accounting Measures”. We believe that providing these measures in accordance with non-IFRS accounting criteria is useful for management, investors and analysts. as they provide additional data to measure the functionality and monetary condition of the Company.
The following non-IFRS monetary measures are used in our monetary information:
The following non-IFRS accounting criteria are used in our monetary reporting:
The following capital control measure is used in our monetary information:
Additional monetary measures are also used in our monetary data, and those measures are described where they are presented.
The non-IFRS monetary measures and ratios, as well as the capital control measure, are derived primarily from the consolidated monetary statements, but do not have standardized meanings prescribed through IFRS accounting standards. These non-IFRS accounting measures deserve not to be considered as in isolation or as a replacement for monetary measures prepared in accordance with IFRS accounting standards. In addition, our definitions of non-IFRS accounting measures would possibly differ from those of other public companies. Any such adjustment or reformulation can be significant. These measures are also adjusted for the pro forma effect of our acquisitions and the effect of new accounting standards, if they are deemed material.
Gross profit. Gross margin includes sales minus sales charges, depreciation, amortization, and depreciation. This measure is considered to be useful in assessing the underlying functionality of our operations.
The following table reconciles profit and charge for sales, depreciation, amortization and impairment, under IFRS accounting standards, with gross margin:
Completed 16-week periods
Full 40-week periods.
(millions of U. S. dollars)
February 4, 2024
January 29, 2023
February 4, 2024
January 29, 2023
Gain
19 622,0
20 055,1
51 670,8
55 592,3
Cost of sales, depreciation, amortization, and depreciation.
16 180,5
16 654,6
42 354,4
46 448,8
Gross Profit
3 441,5
3 400,5
9 316,4
9 143,5
Note that the same reconciliation applies to the determination of gross margin and geography presented in the “Summary Analysis of Consolidated Results” section.
Gross margin on goods and services. Gross margin on goods and services includes gross margin on products and services divided by revenue on products and services. Both measures are presented in the “Summary Analysis of Consolidated Results” section. Gross merchandise and services margin is useful for evaluating how successfully we generate gross profit consistent with dollar revenue.
Gross margin on fuels for road transport. Road Transportation Fuel Gross Margin is calculated as the Gross Road Transportation Fuel Margin divided by the total volume of Road Transportation Fuel sold. For the U. S. , Europe, and other regions, any of the measures are presented in the “Summary Analysis of Consolidated Results” section. Canada, this measure is presented in functional currency and the table below reconciles sales revenue and charges, depreciation, amortization and depreciation, for road transportation fuel, in accordance with IFRS accounting standards, with the gross margin and the resulting gross trucking fuel. . This metric is considered to be useful in evaluating how successfully we generate a gross profit consistent with the gallon or liter of trucking fuel sold.
Completed 16-week periods
Full 40-week periods.
(in millions of Canadian dollars, unless otherwise noted)
February 4, 2024
January 29, 2023
February 4, 2024
January 29, 2023
Fuel revenue from road transport
2 273,7
2 475,2
6 242,0
6 517,7
Cost of sales of fuels for road transport, depreciation, amortization and depreciation.
2 053,3
2 253,7
5 653,1
5 962,2
Gross profit from road transport fuels
220,4
221,5
588,9
555,5
Total volume of fuel for road transport (million litres)
1 696,9
1 769,0
4 439,4
4 286,5
Gross Fuel Margin for Trucking (Canadian cents per litre)
12,99
12. 52
13. 27
12,96
Normalized expansion of operating, sales, general and administrative expenses (“normalized expansion of (decrease) expenses”). The expansion (decrease) of normalized expenses includes the expansion (decrease) of operating, selling, general and administrative expenses adjusted to have an effect of adjustments in our network, the effect of adjustments in accounting policies and the adoption of accounting standards, the effect of the more volatile pieces over which we have limited control, including, but not limited to, the net effect of foreign currency translation, non-acquisition electronic payment fees, and acquisition costs, as well as other express items for which the effect on consolidated effects is not considered indicative of long-term trends. This measure is believed to be equally useful in assessing our ability to control our expenditures on a comparable basis.
The following tables reconcile the expansion of operating, selling, general and administrative expenses with the normalized expansion of (decreases) expenses:
Completed 16-week periods
(Millions of U. S. dollars, unless otherwise noted)
February 4, 2024
January 29, 2023
Variation
January 29, 2023
January 30, 2022
Variation
Operating, selling, and administrative expenses, as reported
1 975,3
1 916,1
3,1%
1 916,1
1 801,3
6,4%
Adjusted by:
Increase in other procurement-related expenses
(92,4)
–
(4,8 %)
(16. 4)
–
(0,9 %)
Decrease (increase) similar to the evolution of electronic payments, procurement rates
12. 7
–
0,7%
(15. 2)
–
(0,8 %)
(Increase) minimize the net effect of foreign currency translation
(7. 4)
–
(0,4 %)
56. 2
–
3,1%
(Increase) minimize similar to adjustments in acquisition prices identified in profit or loss
(2. 9)
–
(0,2 %)
0,5
–
–
Normalized growth (decline) in expenditure
1 885,3
1 916,1
(1,6 %)
1 941,2
1 801,3
7,8%
Full 40-week periods.
(Millions of U. S. dollars, unless otherwise noted)
February 4, 2024
January 29, 2023
Variation
January 29, 2023
January 30, 2022
Variation
Operating, selling, and administrative expenses, as reported
4 882,7
4 747,2
2,9%
4 747,2
4 400,7
7,9%
Adjusted by:
Increase in other procurement-related expenses
(138,6)
–
(2,9 %)
(40,7)
–
(0,9 %)
Decrease (increase) similar to the evolution of electronic payments, procurement rates
50,5
–
1,0 %
(92,6)
–
(2,1 %)
Increase in acquisition price adjustments identified in profit or loss
(4. 1)
–
(0,1 %)
(3. 4)
–
(0,1 %)
(Increase) minimize the net effect of foreign currency translation
(1. 4)
–
–
130. 1
–
2,9%
Normalized Expense Growth
4 789,1
4 747,2
0,9%
4 740,6
4 400,7
7,7%
Expansion (decrease) of same-store product earnings for Europe and other regions. Earnings from products from the same store represent product earnings accrued between the existing era and the comparative era for retail outlets that were open for at least 23 days out of every 28 days. Commodity profits are explained as profits from products and services. For Europe and other regions, the expansion (decrease) of in-store product earnings is calculated on a consistent monetary basis using the respective average exchange rate of the existing era. rate for existing and corresponding eras. In Europe and other regions, earnings from the same products come with earnings from the same stores from corporate retail outlets, as well as CODO and DODO outlets that are not included in our consolidated results. This measure is considered useful to assess our ability to generate biological expansion on a comparable basis across our store network in Europe and other regions.
The tables below reconcile product and service revenue, in accordance with IFRS accounting standards, with same-store product revenue for Europe and other regions and the resulting percentage expansion (decrease):
Completed 16-week periods
(Millions of U. S. dollars, unless otherwise noted)
February 4, 2024
January 29, 2023
January 29, 2023
January 30, 2022
Goods and Services Benefits for Europe and Regions
787,5
713. 0
713. 0
715,9
Adjusted by:
Service Revenue
(78,7)
(61,3)
(61,3)
(61,4)
Net exchange rate effect
–
15. 3
–
(55. 2)
The merchandise benefit meets the definition of a comparable store.
(78,6)
(9. 2)
(27. 9)
(2. 8)
Same-store product earnings are not included in our consolidated results, which adds the effect of store conversions.
73,7
48. 2
92,8
95,7
Total same-store product sales for Europe and other regions
703. 9
706. 0
716,6
692. 2
Expansion (decrease) of same-store product revenue for Europe and other regions
(0,3 %)
3,5 %
Full 40-week periods.
(Millions of U. S. dollars, unless otherwise noted)
February 4, 2024
January 29, 2023
January 29, 2023
January 30, 2022
Goods and Services Benefits for Europe and Regions
1 980,4
1 801,0
1 801,0
1 857,7
Adjusted by:
Service Revenue
(176,0)
(140,0)
(140,0)
(147. 2)
Net External Effect
–
38,0
–
(160,5)
The merchandise benefit meets the definition of a comparable store.
(120,3)
(39. 1)
(68,8)
(38,0)
Same-store product earnings are not included in our consolidated results, which adds the effect of store conversions.
236. 2
247,4
257,4
281,7
Total same-store product sales for Europe and other regions
1 920,3
1 907,3
1 849,6
1 793,7
Expanding the benefits of products from the same stores in Europe and other regions
0,7%
3,1%
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted EBITDA. EBITDA represents net profit plus income tax source, net financial prices, and depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for acquisition prices, has an effect on adjustments to accounting policies and the adoption of accounting standards, as well as other express items for which the effect on consolidated effects is not considered indicative of long-term trends. These functionality measures are considered useful to facilitate the assessment of our ongoing operations and our ability to generate cash flows to fund our money requirements, adding our capital expenditure program, percentage buybacks, and dividend payments.
The following table reconciles the net source of income under IFRS accounting criteria with EBITDA and Adjusted EBITDA:
Completed 16-week periods
Full 40-week periods.
(millions of U. S. dollars)
February 4, 2024
January 29, 2023
February 4, 2024
January 29, 2023
Net Profit
624,4
737,4
2. 277,7
2 420,2
Add:
Income Taxes
176,2
206,7
664,5
678,6
Net Finance Costs
130,3
82,5
248,0
207,7
Depreciation, amortization and depreciation
537,5
463. 2
1 267,6
1 136,3
EBITDA
1 468,4
1 489,8
4 457,8
4 442,8
Adjusted by:
Acquisition Cost
5. 6
2. 7
13. 3
9. 2
Adjusted EBITDA
1 474,0
1 492,5
4 471,1
4 452,0
Adjusted net earnings attributable to the Company’s shareholders and adjusted diluted net earnings consistent with the stock. Adjusted net earnings attributable to shareholders of the Company constitute net earnings attributable to shareholders of the Company adjusted for net foreign exchange gains or losses, acquisition costs, the effect on adjustments in accounting policies and the adoption of accounting standards, impairment of goodwill, investments in subsidiaries, joint ventures and associates, as well as other express items whose effect on consolidated effects is not considered indicative of long-term trends, such as the reclassification adjustment of the gain on interest rate swaps deferred and the effect of non-controlling interests in the pieces analyzed above. Please note that adjustments in the composition of this measure related to the net source of income attributable to the Company’s shareholders and the effect of non-controlling interests in the parties mentioned above deserve to reflect the effect of the addition of non-controlling interests at the quarterly rate. These measures are considered useful in evaluating the underlying functionality of our coherent relationships on a comparable basis.
The following table reconciles the net source of income attributable to the Company’s shareholders, in accordance with IFRS accounting standards, with the adjusted net earnings attributable to the Company’s shareholders and the adjusted diluted net earnings consistent with the interest:
(Millions of U. S. dollars, unless consistent with percentage amounts, or unless otherwise noted)
Completed 16-week periods
Full 40-week periods.
February 4, 2024
January 29, 2023
February 4, 2024
January 29, 2023
Net income attributable to the Company’s shareholders
623,4
737,4
2 276,7
2 420,2
Adjusted by:
Acquisition Cost
5. 6
2. 7
13. 3
9. 2
Foreign net loss (gain)
(5. 4)
1. 6
(11. 4)
1. 1
Reclassification Adjustment for Profit on Deferred Interest Rate Swaps
–
–
(32,9)
–
Deterioration of our fire
–
–
2. 0
23. 9
The tax affects the above pieces and is rounded up.
1. 4
(0,7)
7. 3
(0,4)
Adjusted earnings attributable to the Company’s shareholders
625,0
741,0
2 255,0
2 454,0
Weighted number of shares – diluted (in millions)
963,8
1 005,9
970. 1
1 017,3
Adjusted diluted earnings consistent with participation
0,65
0,74
2. 32
2. 41
Interest-bearing debt. This measure represents the sum of the following balance sheet accounts: Current Debt and Current Portion of Long-Term Debt, Long-Term Debt, Current Portion of Lease Liabilities, and Lease Liabilities. This measure is useful to facilitate the understanding of our monetary position in relation to our investment obligations. The calculation of this measure of monetary position is detailed in the “Net Interest-Bearing Debt/Total Capitalization” segment below.
Net interest-bearing debt/global capitalization. This bureaucratic measure is the basis for tracking our capital and is useful for assessing our monetary health, threat profile, and ability to meet our investment obligations. It also provides information on how our investment obligations are structured in relation to our overall capitalization.
The following table shows how this functionality metric is calculated:
(Millions of U. S. dollars, ratio data)
Effective February 4, 2024
As of April 30, 20231
Short-term debt and part of long-term debt
2 162,9
0,7
Current Percentage of Rental Obligations
503. 2
438. 1
Long-term debt
8 376,0
5 888,3
Rental debts
3 648,5
3 146,5
Interest-bearing debt
14 690,6
9 473,6
Less: Cash & Cash Equivalents
(1 036,1)
(834,2)
Net interest-bearing debt
13 654,5
8 639,4
Shareholders of the Company
13 299,5
12 564,5
Net interest-bearing debt
13 654,5
8 639,4
Total Capitalization
26 954,0
21 203,9
Net interest-bearing debt to overall capitalization ratio
0,51 : 1
0,41 : 1
__________________________
1 Information as of April 30, 2023 has been adjusted to our final estimates of the fair price of acquired assets and liabilities assumed for the acquisition of True Blue Car Wash LLC.
Leverage ratio. This measure represents a measure of the monetary position that is considered useful in assessing our leverage and our ability to cover our net financial obligations in relation to our adjusted EBITDA and the pro forma effect of the acquisition of certain European advertising assets from TotalEnergies SE for the 53-week era ended February 4, 2024. It is worth noting that the change in the composition of this related measure is intended with the pro forma effect of the acquisition of certain European retail assets from TotalEnergies SE, as described in the introductory remarks to this section, to reflect the effect of acquisitions deemed significant on our ability to cover our net financial obligations for the period in which financial obligations similar to the acquisition are included in net interest-bearing debt.
The following table reconciles net interest-bearing debt and adjusted EBITDA, the calculation methodologies for which are described in other tables in this section, as well as the pro forma effect of the acquisition of certain European retail assets from TotalEnergies SE, to the leverage ratio:
Full 53-week periods
(Millions of U. S. dollars, ratio data)
February 4, 2024
April 30, 20231
Net interest-bearing debt
13 654,5
8 639,4
Adjusted EBITDA
5 794,5
5 775,4
Pro Forma Adjustments(1)
445,9
–
Adjusted EBITDA and Form Adjustments
6 240,4
5 775,4
Leverage Ratio
2. 19 : 1
1,50 : 1
(1)
It represents the pre-acquisition EBITDA estimate of the European advertising assets acquired from TotalEnergies SE from January 30, 2023 to the date of acquisition, as well as the estimated effect of synergies arising from the transaction for the same period. The EBITDA used to determine this adjustment is derived from unaudited monetary data. Please refer to the “Forward-Looking Statements” segment for more information on expected synergies.
Return of justice. This measure is useful for assessing the ratio of our profitability to our net assets and also provides insight into how successfully we use our equity to generate returns for our shareholders. The average equity of the Company’s shareholders is calculated by averaging the beginning and ending balances. of 53-week periods.
The following table reconciles the Company’s net source of income attributable to shareholders, in accordance with IFRS accounting standards, with the equity return ratio:
Full 53-week periods
(Millions of U. S. dollars, unless otherwise noted)
February 4, 2024
April 30, 2023
Net income attributable to the Company’s shareholders
2 947,4
3 090,9
Shareholders of the Company – Opening Balance
12 074,4
12 437,6
Shareholders of the Company – Ending Balance
13 299,5
12 564,5
Average shareholders of the Company
12 687,0
12 501,1
Return on equity
23,2%
24,7%
________________________
1 Information as of April 30, 2023 has been adjusted based on our final estimates of the fair price of the assets acquired and liabilities assumed for the acquisition of True Blue Car Wash LLC.
Profitability of contracted capital. This measure is considered useful because it provides information about our ability to generate returns from the total amount of capital invested in our operations and also helps compare our operating power and capital allocation decisions. Earnings before interest and tax (“EBIT”) represents net profit plus source of income taxes and net monetary expenses. Contracted capital represents total assets less existing non-interest bearing liabilities, which excludes short-term debt and the existing portion of long-term debt and the existing portion of rental liabilities. Array Average contracted capital is calculated by taking the average of (i) the beginning balance of contracted capital for the 53-week eras and pro forma replacements and (ii) the ending balance of contracted capital for the 53-week eras. Please note that the change in the composition of this measure related to the pro forma effect of the acquisition of certain European retail assets of TotalEnergies SE is intended, as described in the introductory remarks to this section, to reflect the effect on the acquisitions considered significant in our ability to generate returns on the total amount of capital invested in our operations on a comparable basis given that contracted capital similar to the acquisition is included in the final balance of contracted capital, but not in the initial balance of contracted capital, and that the relevant EBIT is not reflected for the entire 53-week period ended February 4, 2024.
The following table reconciles the net income of EBIT under IFRS accounting standards with the return on capital employed ratio, adding the pro forma effect of the acquisition of certain European retail assets from TotalEnergies SE:
Full 53-week periods.
(Millions of U. S. dollars, unless otherwise noted)
February 4, 2024
April 30, 20231
Net Profit
2 948,4
3 090,9
Add:
Income Taxes
824. 1
838. 2
Net Finance Costs
347,0
306. 7
EBIT
4 119,5
4 235,8
Pro Forma Adjustments(1)
249. 0
–
EBIT & Form Adjustments
4 368,5
4 235,8
Capital Employed – Opening Balance(2)
23 498,8
24 001,0
Pro Forma Adjustments(3)
4 538,0
–
Capital Employed: Opening Balance and Pro Forma Adjustments
28 036,8
24 001,0
Capital Employed – Ending Balance(2)
30 703,4
24 330,7
Average Capital Employed
29 370,1
24 165,9
Return on invested capital
14,9%
17,5%
(1)
It represents the estimated pre-acquisition EBIT of the European advertising assets acquired from TotalEnergies SE from January 30, 2023 to the date of acquisition, as well as the estimated effect of synergies and capital expenditures required for the same period. EBIT used to find that this adjustment is derived from unaudited monetary data. Please refer to the “Forward-Looking Statements” segment for more information on expected synergies.
(2)
The following table reconciles the balance sheet items, in accordance with IFRS accounting standards, with the capital employed:
(millions of U. S. dollars)
Effective February 4, 2024
As of January 29, 2023
As of April 30, 20231
As of April 24, 2022
Total assets
36 243,6
28 320,7
29 058,4
29 591,6
Less: Current liabilities
(8 206,3)
(5 272,0)
(5 166,5)
(6 017,4)
Add: Outstanding Debt and Long-Term Debt Portion
2 162,9
0,8
0,7
1. 4
Add: Current Portion of Liabilities
503. 2
449,3
438. 1
425,4
Capital employed
30 703,4
23 498,8
24 330,7
24 001,0
(3)
It represents the estimated effect of the European business assets acquired from TotalEnergies SE on the initial balance of capital employed, using the same calculation method and based on initial estimates of the fair price of the acquired assets and the liabilities assumed for this acquisition at the acquisition date.
______________________
1 Information as of April 30, 2023 has been adjusted based on our final estimates of the fair price of the assets acquired and liabilities assumed for the acquisition of True Blue Car Wash LLC.
Profile
Couche-Tard is a global leader in convenience and mobility, operating in 29 countries and territories, with more than 16,700 stores, of which approximately 13,100 offer fuel for road transport. With its well-known Couche-Tard and Circle K signs, it is one of the largest independent convenience store operators in the U. S. It is a U. S. national and convenience store retail and fuel industry leader for trucking in Canada, Scandinavia, the Baltics, and Ireland. It also has a significant presence in Poland, as well as in Hong Kong’s Special Administrative Department. It is a region of the People’s Republic of China and has recently expanded to Belgium, Germany, Luxembourg and the Netherlands. More than 150,000 people are hired through its network.
To learn more about Alimentation Couche-Tard Inc. , or to view its audited annual consolidated monetary statements, its unaudited condensed interim consolidated monetary statements, and management’s discussion and analysis (MD
Forward-Looking Statements
Statements contained in this press release, describing Couche-Tard’s objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities laws. To identify such statements, positive or negative verbs are used such as “believe”, “possibly”, “should”, “intend”, “expect”, “estimate”, “assume” and other similar expressions. Couche-Tard wishes to emphasize that, by their very nature, forward-looking statements involve dangers and uncertainties such that their effects, or the actions taken, may also differ superficially from those indicated in or underlying those statements. They have an effect on the degree of achievement of a certain projection. Key points that may also cause the actual effects of Couche-Tard to differ materially from any projections or expectations set forth in the forward-looking statements come with the effects of the integration of the acquired businesses and the ability to realize the projected synergies, which have a effect. A series of replacement cases related to the effect of the COVID-19 pandemic and the ongoing military conflict between Ukraine and Russia, fluctuations in margins in automobile fuel sales, festivals in the convenience store and vending sectors retail automotive fuels, fluctuations in replacement prices. interest rates and any other dangers described in detail from time to time in reports filed through Couche-Tard with the securities governments of Canada and the United States. Our synergy objective is based, among other things, on our comparative research of the existing organizational structures and point of spend within our network, as well as our ability to close the gap, if necessary. Our synergy objective is also based on our evaluation of existing contracts in the geographic spaces of operations and how we hope to be able to renegotiate those contracts to take advantage of our increased purchasing power. Furthermore, our goal of synergies means that we will be able to identify and maintain an effective procedure for sharing the most productive practices within our network. Finally, our objective is also based on our ability to integrate the acquired activities. A radical change in those facts and assumptions may also have a significant effect on our estimate of synergies, as well as the timing of implementation of our various initiatives. Except as otherwise required by applicable securities laws, Couche-Tard disclaims any objective or legal responsibility to update or revise any forward-looking statements, whether as a result of new data, long-term events or otherwise. The forward-looking data contained in this release is based on data available on the date of publication.
Webcast on March 21, 2024 at 8:00 a. m. (EDT)
Couche-Tard invites well-known analysts of the Corporation to make their control inquiries on March 21, 2024, the consultation and response phase of the webcast.
Financial analysts, investors, media and those interested in listening to the webcast of Couche-Tard’s results, which will be published online on March 21, 2024 at 8:00 a. m. m. (EDT), can do so by accessing the Company’s online page at https://corpo. couche-tard. com/ and clicking on the “Investors/Events” section.
Another option may be to simply access the convention by calling an operator by dialing 1-888-390-0549 or the foreign number 1-416-764-8682, followed by the access code 02403180#.
Replay: For those who are unable to pay attention to the live webcast, a replay of the webcast may be obtained on the Company’s online page for a period of 90 days.
POWER SUPPLY Couche-Tard Inc.