ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR 2024
- Results of the fourth quarter and fiscal 2024 included one less week compared with the fourth quarter and fiscal 2023. All quarterly and annual same-store information is presented on a comparable basis of 12 and 52 weeks, respectively.
Fourth Quarter of fiscal 2024
- Net earnings attributable to shareholders of the Corporation were
$453.0 million , or$0.47 per diluted share for the fourth quarter of fiscal 2024 compared with$670.7 million , or$0.68 per diluted share for the fourth quarter of fiscal 2023. Adjusted net earnings attributable to shareholders of the Corporation1 were approximately$461.0 million compared with$698.0 million for the fourth quarter of fiscal 2023. Adjusted diluted net earnings per share1 were$0.48 , representing a decrease of 32.4% from$0.71 for the corresponding quarter of last year, impacted by lower road transportation fuel gross margin1 inthe United States , the impact of one less week in the fourth quarter of fiscal 2024 compared with the fourth quarter of fiscal 2023, and the impact of the Corporation's investments and business acquisitions on depreciation and financial expenses. - Total merchandise and service revenues of
$4.1 billion , a decrease of 1.7%. Same-store merchandise revenues2 decreased by 0.5% inthe United States , by 2.0% inEurope and other regions1, and by 3.4% inCanada , all impacted by constraints on discretionary spending due to challenging economic conditions for low income consumers. - Merchandise and service gross margin1 remained stable in
the United States at 34.1%, decreased by 1.7% inEurope and other regions to 39.2%, mainly due to the integration of certain European retail assets from TotalEnergies SE, which have a different product mix than the operations inEurope and other regions, and increased by 0.8% inCanada to 34.9%. - Same-store road transportation fuel volumes decreased by 1.6% in
the United States , by 1.7% inEurope and other regions, and by 3.5% inCanada . Fuel demand remained unfavorably impacted by challenging economic conditions. - Road transportation fuel gross margin1 of 38.79¢ per gallon in
the United States , a decrease of 6.55¢ per gallon, US 8.30¢ per liter inEurope and other regions, a decrease of US 2.30¢ per liter, and CA 13.68¢ per liter inCanada , an increase of CA 1.55¢ per liter. Road transportation fuel gross margins1 experienced a decline in the first half of the quarter, primarily due to reduced volatility in road transportation fuel prices, but returned to a more usual level towards the end of the quarter. - Growth of expenses for the fourth quarter of fiscal 2024 was 1.7%, while normalized decrease in expenses1 was 7.1%, as disciplined cost control more than compensated the inflationary pressures, even when factoring in the estimated impact of the additional week in the fourth quarter of fiscal 2023.
______________________________________ |
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 2024
- Net earnings per diluted share of
$2.82 compared with$3.06 for fiscal 2023, a decrease of 7.8%, while adjusted diluted net earnings per share1 were$2.81 compared with$3.12 for fiscal 2023, a decrease of 9.9%. - Strong network growth with the addition of 2,175 sites from TotalEnergies SE in
Europe , for a total cash consideration of approximately €3.4 billion ($3.8 billion ), 112 sites from MAPCO inthe United States , for a total cash consideration of$468.7 million as well as with the introduction of 76 new corporate stores. - Successful issuance of US-dollar-denominated senior unsecured notes of
$1.5 billion , Euro-denominated senior unsecured notes of €1.35 billion ($1.45 billion ) and Canadian-dollar-denominated senior unsecured notes of CA$1.3 billion ($1.0 billion ). - During the fourth quarter and fiscal 2024, the Corporation repurchased shares for amounts of
$295.2 million and$1.4 billion , respectively, for a total of 26.6 million shares repurchased under the program endedApril 30, 2024 . OnApril 26, 2024 , the Corporation renewed its share repurchase program, which allows it to repurchase up to 10.0% of the shares outstanding as atApril 18, 2024 . - Increase in the annual dividend declared for fiscal 2024 of 25.5%, from CA 53.00¢ to CA 66.50¢.
____________________________________ |
1 Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS® Accounting Standards. |
"No doubt, this has been a challenging quarter with persistent inflation and continued pressure on consumers who are carefully watching their spending. However, we remain very optimistic about our business. Even with recent setbacks in same-store sales, overall they have steadily grown globally over the past two years with a two-year stack for the quarter in the United States of 2.8%. On the fuel side, we continue to strengthen our leadership position across most of our markets, and our margins remain healthy. We are also proud that our focus has consistently remained on providing everyday value and ease for our customers and leveraging the competitive advantages of our global scale and diversified business to take market shares and drive long-term growth," said Brian Hannasch, President and Chief Executive Officer of
"During this difficult year for many consumers, we are committed to helping our global customers. This includes improving and expanding our
- On
February 12, 2024 , we issued US-dollar-denominated senior unsecured notes totaling$1.5 billion , consisting of a$900.0 million tranche with a coupon rate of 5.27% and maturing in 2034, as well as a$600.0 million tranche with a coupon rate of 5.62% and maturing in 2054. We also issued Euro-denominated senior unsecured notes totaling €1.35 billion ($1.45 billion ), consisting of a €700.0 million ($754.0 million ) tranche with a coupon rate of 3.65% and maturing in 2031, as well as a €650.0 million ($700.2 million ) tranche with a coupon rate of 4.01% and maturing in 2036. The$2.9 billion net proceeds from these issuances were used to repay outstanding indebtedness under our acquisition facility. - During the fourth quarter and fiscal 2024, we repurchased 5.3 million and 26.6 million shares, for amounts of
$295.2 million and$1.4 billion , respectively. OnApril 26, 2024 , theToronto Stock Exchange approved another renewal of our share repurchase program, which took effect onMay 1, 2024 . The renewed share repurchase program allows us to repurchase up to 78.1 million shares, representing 10.0% of the shares outstanding as atApril 18, 2024 , and the share repurchase period will end no later thanApril 30, 2025 .
- We acquired 27 company-operated stores through various transactions since the beginning of fiscal 2024 (none during the fourth quarter of fiscal 2024). We settled these transactions using our available cash.
- We completed the construction of 25 stores and the relocation or reconstruction of 5 stores, reaching a total of 90 stores since the beginning of fiscal 2024. As of
April 28, 2024 , another 24 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
|
12-week period ended |
||||||||
Type of site |
Company- |
|
CODO |
|
DODO |
|
Franchised and |
|
Total |
Number of sites, beginning of period |
10,463 |
|
1,415 |
|
1,476 |
|
1,241 |
|
14,595 |
Openings / constructions / additions |
25 |
|
— |
|
7 |
|
9 |
|
41 |
Closures / disposals / withdrawals |
(48) |
|
— |
|
(20) |
|
(23) |
|
(91) |
Store conversions |
5 |
|
(6) |
|
1 |
|
— |
|
— |
Number of sites, end of period |
10,445 |
|
1,409 |
|
1,464 |
|
1,227 |
|
14,545 |
|
|
|
|
|
|
|
|
|
2,195 |
Total network |
|
|
|
|
|
|
|
|
16,740 |
Number of automated fuel stations included in the period-end |
1,171 |
|
— |
|
92 |
|
— |
|
1,263 |
|
|
|
|
|
|
|
|
|
|
|
52-week period ended |
||||||||
Type of site |
Company- |
|
CODO |
|
DODO |
|
Franchised and |
|
Total |
Number of sites, beginning of period |
9,983 |
|
344 |
|
820 |
|
1,285 |
|
12,432 |
Acquisitions |
548 |
|
1,083 |
|
683 |
|
— |
|
2,314 |
Openings / constructions / additions |
76 |
|
— |
|
36 |
|
57 |
|
169 |
Closures / disposals / withdrawals |
(174) |
|
(6) |
|
(71) |
|
(119) |
|
(370) |
Store conversions |
12 |
|
(12) |
|
(4) |
|
4 |
|
— |
Number of sites, end of period |
10,445 |
|
1,409 |
|
1,464 |
|
1,227 |
|
14,545 |
|
|
|
|
|
|
|
|
|
2,195 |
Total network |
|
|
|
|
|
|
|
|
16,740 |
(1) Stores which are part of |
We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
|
12-week period ended |
13-week period ended |
52-week period ended |
53-week period ended |
|
|
|
|
|
Average for the period(1) |
|
|
|
|
Canadian dollar |
0.7369 |
0.7386 |
0.7406 |
0.7531 |
Norwegian krone |
0.0937 |
0.0961 |
0.0938 |
0.0995 |
Swedish krone |
0.0949 |
0.0960 |
0.0940 |
0.0959 |
Danish krone |
0.1448 |
0.1449 |
0.1452 |
0.1401 |
Zloty |
0.2505 |
0.2301 |
0.2447 |
0.2216 |
Euro |
1.0798 |
1.0789 |
1.0828 |
1.0423 |
|
0.1278 |
0.1274 |
0.1278 |
0.1276 |
(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.
The following table highlights certain information regarding our operations for the 12 and 52-week periods ended
|
12-week period |
13-week period |
|
52-week period |
53-week period |
|
(in millions of US dollars, unless otherwise stated) |
|
|
Variation |
|
|
Variation |
Statement of Operations Data: |
|
|
|
|
|
|
Merchandise and service revenues(1): |
|
|
|
|
|
|
|
2,823.2 |
3,006.5 |
(6.1) |
12,334.5 |
12,356.0 |
(0.2) |
|
769.9 |
585.7 |
31.4 |
2,750.3 |
2,386.7 |
15.2 |
|
513.6 |
585.7 |
(12.3) |
2,451.1 |
2,540.7 |
(3.5) |
Total merchandise and service revenues |
4,106.7 |
4,177.9 |
(1.7) |
17,535.9 |
17,283.4 |
1.5 |
Road transportation fuel revenues: |
|
|
|
|
|
|
|
7,208.5 |
7,903.2 |
(8.8) |
31,531.1 |
35,232.1 |
(10.5) |
|
4,811.7 |
2,548.8 |
88.8 |
13,581.1 |
11,837.7 |
14.7 |
|
1,278.9 |
1,399.5 |
(8.6) |
5,911.0 |
6,342.6 |
(6.8) |
Total road transportation fuel revenues |
13,299.1 |
11,851.5 |
12.2 |
51,023.2 |
53,412.4 |
(4.5) |
Other revenues(2): |
|
|
|
|
|
|
|
16.9 |
11.4 |
48.2 |
45.6 |
43.8 |
4.1 |
|
161.9 |
208.4 |
(22.3) |
622.9 |
1,067.7 |
(41.7) |
|
8.1 |
15.2 |
(46.7) |
35.9 |
49.4 |
(27.3) |
Total other revenues |
186.9 |
235.0 |
(20.5) |
704.4 |
1,160.9 |
(39.3) |
Total revenues |
17,592.7 |
16,264.4 |
8.2 |
69,263.5 |
71,856.7 |
(3.6) |
Merchandise and service gross profit(1)(3): |
|
|
|
|
|
|
|
961.8 |
1,024.1 |
(6.1) |
4,192.6 |
4,172.4 |
0.5 |
|
301.5 |
239.3 |
26.0 |
1,079.3 |
925.2 |
16.7 |
|
179.2 |
199.7 |
(10.3) |
833.5 |
841.8 |
(1.0) |
Total merchandise and service gross profit |
1,442.5 |
1,463.1 |
(1.4) |
6,105.4 |
5,939.4 |
2.8 |
Road transportation fuel gross profit(3): |
|
|
|
|
|
|
|
821.7 |
1,020.3 |
(19.5) |
4,152.5 |
4,375.6 |
(5.1) |
|
342.1 |
259.1 |
32.0 |
1,103.7 |
1,034.4 |
6.7 |
|
123.6 |
125.8 |
(1.7) |
560.7 |
546.6 |
2.6 |
Total road transportation fuel gross profit |
1,287.4 |
1,405.2 |
(8.4) |
5,816.9 |
5,956.6 |
(2.3) |
Other revenues gross profit(2)(3): |
|
|
|
|
|
|
|
10.3 |
11.4 |
(9.6) |
39.0 |
43.8 |
(11.0) |
|
34.3 |
21.1 |
62.6 |
106.5 |
82.9 |
28.5 |
|
7.0 |
7.8 |
(10.3) |
30.1 |
29.4 |
2.4 |
Total other revenues gross profit |
51.6 |
40.3 |
28.0 |
175.6 |
156.1 |
12.5 |
Total gross profit(3) |
2,781.5 |
2,908.6 |
(4.4) |
12,097.9 |
12,052.1 |
0.4 |
Operating, selling, general and administrative expenses |
1,642.5 |
1,614.6 |
1.7 |
6,525.2 |
6,361.8 |
2.6 |
Loss (gain) on disposal of property and equipment and other assets |
4.3 |
(29.3) |
(114.7) |
2.4 |
(67.6) |
(103.6) |
Depreciation, amortization and impairment |
492.5 |
389.6 |
26.4 |
1,760.1 |
1,525.9 |
15.3 |
Operating income |
642.2 |
933.7 |
(31.2) |
3,810.2 |
4,232.0 |
(10.0) |
Net financial expenses |
139.9 |
99.0 |
41.3 |
387.9 |
306.7 |
26.5 |
Net earnings |
454.5 |
670.7 |
(32.2) |
2,732.2 |
3,090.9 |
(11.6) |
Net earnings attributable to non-controlling interests |
(1.5) |
— |
(100.0) |
(2.5) |
— |
(100.0) |
Net earnings attributable to shareholders of the Corporation |
453.0 |
670.7 |
(32.5) |
2,729.7 |
3,090.9 |
(11.7) |
Per Share Data: |
|
|
|
|
|
|
Basic net earnings per share (dollars per share) |
0.47 |
0.68 |
(30.9) |
2.82 |
3.07 |
(8.1) |
Diluted net earnings per share (dollars per share) |
0.47 |
0.68 |
(30.9) |
2.82 |
3.06 |
(7.8) |
Adjusted diluted net earnings per share (dollars per share)(3) |
0.48 |
0.71 |
(32.4) |
2.81 |
3.12 |
(9.9) |
|
12-week period |
13-week period |
|
52-week period |
53-week period |
|
(in millions of US dollars, unless otherwise stated) |
|
|
Variation |
|
|
Variation |
Other Operating Data: |
|
|
|
|
|
|
Merchandise and service gross margin(1)(3): |
|
|
|
|
|
|
Consolidated |
35.1 % |
35.0 % |
0.1 |
34.8 % |
34.4 % |
0.4 |
|
34.1 % |
34.1 % |
— |
34.0 % |
33.8 % |
0.2 |
|
39.2 % |
40.9 % |
(1.7) |
39.2 % |
38.8 % |
0.4 |
|
34.9 % |
34.1 % |
0.8 |
34.0 % |
33.1 % |
0.9 |
Growth of (decrease in) same-store merchandise revenues(4)(8): |
|
|
|
|
|
|
|
(0.5 %) |
3.3 % |
|
(0.1 %) |
4.3 % |
|
|
(2.0 %) |
3.0 % |
|
0.1 % |
3.1 % |
|
|
(3.4 %) |
5.9 % |
|
0.9 % |
1.2 % |
|
Road transportation fuel gross margin(3): |
|
|
|
|
|
|
|
38.79 |
45.34 |
(14.4) |
45.28 |
47.51 |
(4.7) |
|
8.30 |
10.60 |
(21.7) |
8.73 |
9.98 |
(12.5) |
|
13.68 |
12.13 |
12.8 |
13.35 |
12.75 |
4.7 |
Total volume of road transportation fuel sold: |
|
|
|
|
|
|
|
2,118.1 |
2,250.3 |
(5.9) |
9,171.7 |
9,209.7 |
(0.4) |
|
4,120.2 |
2,443.7 |
68.6 |
12,640.5 |
10,365.7 |
21.9 |
|
1,226.5 |
1,403.6 |
(12.6) |
5,665.9 |
5,690.1 |
(0.4) |
Growth of (decrease in) same-store road transportation fuel volumes(5)(8): |
|
|
|
|
|
|
|
(1.6 %) |
0.8 % |
|
(0.8 %) |
(1.9 %) |
|
|
(1.7 %) |
(2.4 %) |
|
(1.5 %) |
(3.2 %) |
|
|
(3.5 %) |
6.0 % |
|
1.6 % |
(0.1 %) |
|
|
|
|
|
|
|
|
(in millions of US dollars, unless otherwise stated) |
As at |
As at |
Variation |
Balance Sheet Data: |
|
|
|
Total assets |
36,942.1 |
29,058.4 |
7,883.7 |
Interest-bearing debt(3) |
14,471.7 |
9,473.6 |
4,998.1 |
Equity attributable to shareholders of the Corporation |
13,189.2 |
12,564.5 |
624.7 |
Indebtedness Ratios(3): |
|
|
|
Net interest-bearing debt/total capitalization |
0.50 : 1 |
0.41 : 1 |
|
Leverage ratio |
2.21 : 1 |
1.50 : 1 |
|
Returns(3)(9): |
|
|
|
Return on equity |
21.2 % |
24.7 % |
|
Return on capital employed |
13.3 % |
17.5 % |
|
(1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. Franchise fees from international licensed stores are presented in |
(2) Includes revenues from the rental of assets and from the sale of energy for stationary engines and aviation fuel. |
(3) Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on our performance measures not defined by IFRS Accounting Standards, as well as our capital management measure. |
(4) 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. |
(5) For company-operated stores only. |
(6) Calculated based on respective functional currencies. |
(7) Growth of (decrease in) same-store merchandise revenues and growth of (decrease in) same-store road transportation fuel volumes for |
(8) Presented on a comparable basis of 12 and 52 weeks. |
(9) The information as at |
Our revenues were
For fiscal 2024, our revenues decreased by
Merchandise and service revenues
Total merchandise and service revenues for the fourth quarter of fiscal 2024 were
For fiscal 2024, the growth in merchandise and service revenues was
Road transportation fuel revenues
Total road transportation fuel revenues for the fourth quarter of fiscal 2024 were
For fiscal 2024, the road transportation fuel revenues decreased by
___________________________________ |
1 Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
The following table shows the average selling price of road transportation fuel of our company-operated stores in our various markets for the last eight quarters. The average selling price of road transportation fuel consists of the road transportation fuel revenues divided by the volume of road transportation fuel sold:
Quarter |
1ˢᵗ |
2ⁿᵈ |
3ʳᵈ |
4ᵗʰ |
Weighted |
|
52-week period ended |
|
|
|
|
|
|
|
United States (US dollars per gallon) |
3.52 |
3.76 |
3.18 |
3.40 |
3.44 |
|
|
98.02 |
108.87 |
112.53 |
125.90 |
113.64 |
|
|
142.77 |
152.03 |
136.26 |
143.91 |
143.28 |
53-week period ended |
|
|
|
|
|
|
|
United States (US dollars per gallon) |
4.61 |
3.84 |
3.50 |
3.52 |
3.84 |
|
|
129.11 |
117.39 |
113.55 |
109.77 |
118.51 |
|
|
179.15 |
149.55 |
143.32 |
137.66 |
151.49 |
Other revenues
Total other revenues for the fourth quarter of fiscal 2024 were
For fiscal 2024, total other revenues were
Our gross profit was $2.8 billion for the fourth quarter of fiscal 2024, down by
For fiscal 2024, our gross profit increased by
Merchandise and service gross profit
In the fourth quarter of fiscal 2024, our merchandise and service gross profit was
During fiscal 2024, our merchandise and service gross profit was $6.1 billion, an increase of
___________________________________ |
1 Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Road transportation fuel gross profit
In the fourth quarter of fiscal 2024, our road transportation fuel gross profit was
During fiscal 2024, our road transportation fuel gross profit was $5.8 billion, a decrease of
The road transportation fuel gross margin1 of our company-operated stores in
(US cents per gallon) |
|
|
|
|
|
Quarter |
1ˢᵗ |
2ⁿᵈ |
3ʳᵈ |
4ᵗʰ |
Weighted |
52-week period ended |
|
|
|
|
|
Before deduction of expenses related to electronic payment modes |
51.26 |
51.15 |
44.38 |
39.28 |
46.38 |
Expenses related to electronic payment modes(1) |
6.13 |
6.04 |
5.77 |
6.03 |
5.98 |
After deduction of expenses related to electronic payment modes |
45.13 |
45.11 |
38.61 |
33.25 |
40.40 |
53-week period ended |
|
|
|
|
|
Before deduction of expenses related to electronic payment modes |
50.95 |
51.11 |
48.39 |
46.43 |
49.13 |
Expenses related to electronic payment modes(1) |
7.21 |
6.53 |
6.20 |
6.17 |
6.50 |
After deduction of expenses related to electronic payment modes |
43.74 |
44.58 |
42.19 |
40.26 |
42.63 |
(1) Expenses related to electronic payment modes are determined by allocating the portion of total electronic payment modes, which are included in Operating, selling, general and administrative expenses, deemed related to our |
The road transportation fuel gross margin1 of our network in
Quarter |
1ˢᵗ |
2ⁿᵈ |
3ʳᵈ |
4ᵗʰ |
Weighted |
52-week period ended |
|
|
|
|
|
|
8.21 |
10.20 |
8.56 |
8.30 |
8.73 |
|
13.25 |
13.63 |
12.99 |
13.68 |
13.35 |
53-week period ended |
|
|
|
|
|
|
12.26 |
9.76 |
8.01 |
10.60 |
9.98 |
|
14.04 |
12.55 |
12.52 |
12.13 |
12.75 |
Generally, road transportation fuel margins can be volatile from one quarter to another but tend to be more stable over longer periods. In
Other revenues gross profit
In the fourth quarter of fiscal 2024, other revenues gross profit was $51.6 million, an increase of
During fiscal 2024, other revenues gross profit was $175.6 million, an increase of
____________________________________ |
1 Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
For the fourth quarter and fiscal 2024, expenses increased by 1.7% and 2.6%, respectively, compared with the corresponding periods of fiscal 2023. Normalized decrease in expenses[7] was 7.1%, and 1.1%, respectively, as shown in the table below:
|
12-week period |
13-week period |
52-week period |
53-week period |
|
|
|
|
|
Growth of expenses, as reported |
1.7 % |
8.8 % |
2.6 % |
8.1 % |
Adjusted for: |
|
|
|
|
Increase from incremental expenses related to acquisitions |
(9.9 %) |
(1.3 %) |
(4.7 %) |
(1.0 %) |
Decrease (increase) from changes in electronic payment fees, excluding acquisitions |
1.1 % |
(0.4 %) |
1.1 % |
(1.7 %) |
Increase from changes in acquisition costs recognized to earnings |
— |
(0.2 %) |
(0.1 %) |
(0.1 %) |
Decrease from the net impact of foreign exchange translation |
— |
2.0 % |
— |
2.7 % |
Cloud computing transition adjustment |
— |
1.0 % |
— |
0.3 % |
Normalized (decrease in) growth of expenses1 |
(7.1 %) |
9.9 % |
(1.1 %) |
8.3 % |
Normalized decrease in expenses1 for the fourth quarter and fiscal 2024 was mainly driven by the impact of one less week in the fourth quarter of fiscal 2024 compared with the fourth quarter of fiscal 2023, as well as by the continued strategic efforts to control our expenses, including labor efficiency in our stores. Our control of expenses remains evidenced by our normalized decrease in expenses1 as disciplined cost control more than compensated the inflationary pressures, the impact of costs from rising minimum wages, as well as incremental investments to support our strategic initiatives.
During the fourth quarter of fiscal 2024, EBITDA stood at
During fiscal 2024, EBITDA stood at
For the fourth quarter of fiscal 2024, our depreciation expense increased by
For fiscal 2024, our depreciation expense increased by $234.2 million compared with fiscal 2023. The translation of our foreign currency operations into US dollars had a net favorable impact of approximately
____________________________________ |
1 Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
Net financial expenses for the fourth quarter and fiscal 2024 were
|
12-week period |
13-week period |
|
52-week period |
53-week period |
|
(in millions of US dollars) |
|
|
Variation |
|
|
Variation |
Net financial expenses, as reported |
139.9 |
99.0 |
40.9 |
387.9 |
306.7 |
81.2 |
Explained by: |
|
|
|
|
|
|
Net foreign exchange (loss) gain |
(5.2) |
0.4 |
(5.6) |
6.2 |
(0.7) |
6.9 |
Change in fair value of financial instruments |
1.1 |
(0.1) |
1.2 |
(10.7) |
0.8 |
(11.5) |
Reclassification adjustment of gain on |
— |
— |
— |
32.9 |
— |
32.9 |
Loss on convertible promissory notes |
— |
(26.4) |
26.4 |
— |
(26.4) |
26.4 |
Remaining variation |
135.8 |
72.9 |
62.9 |
416.3 |
280.4 |
135.9 |
The remaining variation of the fourth quarter and fiscal 2024 is mainly driven by higher average short-term and long-term debt in connection with our recent acquisitions, as well as higher interest rates, partly offset by higher interest revenue.
The income tax rate for the the fourth quarter of fiscal 2024 was 10.2% compared with 19.2% for the fourth quarter of fiscal 2023. The income tax rate includes a net tax benefit derived from an internal reorganization, which had a favorable impact of 6.5% on the income tax rate. The remaining decrease of 2.5% is mainly stemming from the impact of a different mix in our earnings across the various jurisdictions in which we operate.
The income tax rate for fiscal 2024 was 20.8% compared with 21.3% for fiscal 2023. This decrease is mainly attributable to similar factors as those of the fourth quarter.
Net earnings attributable to shareholders of the Corporation for the fourth quarter of fiscal 2024 were
Adjusted net earnings attributable to shareholders of the Corporation for the fourth quarter of fiscal 2024 were approximately
For fiscal 2024, net earnings attributable to shareholders of the Corporation stood at
Adjusted net earnings attributable to shareholders of the Corporation for fiscal 2024 stood at
___________________________________ |
1 Please refer to the "Non-IFRS Accounting Standards Measures" section for additional information on performance measures not defined by IFRS Accounting Standards. |
During its
For fiscal 2024, the Board of Directors declared total dividends of CA 66.50¢ per share, an increase of 25.5% compared with CA 53.00¢ for fiscal 2023.
To provide more information for evaluating the Corporation's performance, the financial information included in our financial documents contains certain data that are not performance measures under IFRS® Accounting Standards as issued by the
The following Non-IFRS Accounting Standards financial measures are used in our financial disclosures:
- Gross profit;
- Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA") and adjusted EBITDA;
- Adjusted net earnings attributable to shareholders of the Corporation;
- Interest-bearing debt.
The following Non-IFRS Accounting Standards ratios are used in our financial disclosures:
- Merchandise and service gross margin and Road transportation fuel gross margin;
- Normalized growth of (decrease in) operating, selling, general and administrative expenses;
- Growth of (decrease in) same-store merchandise revenues for
Europe and other regions; - Adjusted diluted net earnings per share;
- Leverage ratio;
- Return on equity and return on capital employed.
The following capital management measure is used in our financial disclosures:
- Net interest-bearing debt/total capitalization.
Supplementary financial measures are also used in our financial disclosures and those measures are described where they are presented.
Non-IFRS Accounting Standards financial measures and ratios, as well as the capital management measure, are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS Accounting Standards. These Non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS Accounting Standards. In addition, our definitions of Non-IFRS Accounting Standards measures may differ from those of other public corporations. Any such modification or reformulation may be significant. These measures are also adjusted for the pro forma impact of our acquisitions and impacts of new accounting standards if they are considered to be material.
Gross profit. Gross profit consists of revenues less the cost of sales, excluding depreciation, amortization and impairment. This measure is considered useful for evaluating the underlying performance of our operations.
The table below reconciles revenues and cost of sales, excluding depreciation, amortization and impairment, as per IFRS Accounting Standards, to gross profit:
|
12-week period |
13-week period |
52-week period |
53-week period |
(in millions of US dollars) |
|
|
|
|
Revenues |
17,592.7 |
16,264.4 |
69,263.5 |
71,856.7 |
Cost of sales, excluding depreciation, amortization and impairment |
14,811.2 |
13,355.8 |
57,165.6 |
59,804.6 |
Gross profit |
2,781.5 |
2,908.6 |
12,097.9 |
12,052.1 |
Please note that the same reconciliation applies in the determination of gross profit by category and by geography presented in the section "Summary Analysis of Consolidated Results".
Merchandise and service gross margin. Merchandise and service gross margin consists of Merchandise and service gross profit divided by Merchandise and service revenues, both measures are presented in the section "Summary Analysis of Consolidated Results". Merchandise and service gross margin is considered useful for evaluating how efficiently we generate gross profit by dollar of revenue.
Road transportation fuel gross margin.
Road transportation fuel gross margin consists of Road transportation fuel gross profit divided by total volume of road transportation fuel sold. For
|
12-week period |
13-week period |
52-week period |
53-week period |
(in millions of Canadian dollars, unless otherwise noted) |
|
|
|
|
Road transportation fuel revenues |
1,736.0 |
1,894.7 |
7,978.0 |
8,412.4 |
Road transportation fuel cost of sales, excluding depreciation, amortization and impairment |
1,568.2 |
1,724.5 |
7,221.4 |
7,686.7 |
Road transportation fuel gross profit |
167.8 |
170.2 |
756.6 |
725.7 |
Total road transportation fuel volume sold (in millions of liters) |
1,226.5 |
1,403.6 |
5,665.9 |
5,690.1 |
Road transportation fuel gross margin (CA cents per liter) |
13.68 |
12.13 |
13.35 |
12.75 |
Normalized growth of (decrease in) operating, selling, general and administrative expenses ("normalized growth of (decrease in) expenses"). Normalized growth of (decrease in) expenses consists of the growth of (decrease in) Operating, selling, general and administrative expenses adjusted for the impact of the changes in our network, the impact from changes in accounting policies and adoption of accounting standards, the impact of more volatile items over which we have limited control including, but not limited to, the net impact of foreign exchange translation, electronic payment fees excluding acquisitions, and acquisition costs, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends. This measure is considered useful for evaluating our ability to control our expenses on a comparable basis.
The tables below reconcile growth of Operating, selling, general and administrative expenses to normalized growth of (decrease in) expenses:
|
12-week period |
13-week period |
|
13-week period |
12-week period |
|
(in millions of US dollars, unless otherwise noted) |
|
|
Variation |
|
|
Variation |
Operating, selling, general and administrative |
1,642.5 |
1,614.6 |
1.7 % |
1,614.6 |
1,483.8 |
8.8 % |
Adjusted for: |
|
|
|
|
|
|
Increase from incremental expenses related to |
(160.1) |
— |
(9.9 %) |
(18.6) |
— |
(1.3 %) |
Decrease (increase) from changes in electronic |
17.5 |
— |
1.1 % |
(6.0) |
— |
(0.4 %) |
Increase from changes in acquisition costs |
(0.3) |
— |
— |
(3.6) |
— |
(0.2 %) |
Decrease from the net impact of foreign exchange |
— |
— |
— |
29.4 |
— |
2.0 % |
Cloud computing transition adjustment |
— |
— |
— |
15.1 |
— |
1.0 % |
Normalized (decrease in) growth of expenses |
1,499.6 |
1,614.6 |
(7.1 %) |
1,630.9 |
1,483.8 |
9.9 % |
|
|
|
|
|
|
|
|
52-week period |
53-week period |
|
53-week period |
52-week period |
|
(in millions of US dollars, unless otherwise noted) |
|
|
Variation |
|
|
Variation |
Operating, selling, general and administrative |
6,525.2 |
6,361.8 |
2.6 % |
6,361.8 |
5,884.5 |
8.1 % |
Adjusted for: |
|
|
|
|
|
|
Increase from incremental expenses related to |
(298.7) |
— |
(4.7 %) |
(59.3) |
— |
(1.0 %) |
Decrease (increase) from changes in electronic |
68.0 |
— |
1.1 % |
(98.6) |
— |
(1.7 %) |
Increase from changes in acquisition costs |
(4.4) |
— |
(0.1 %) |
(7.0) |
— |
(0.1 %) |
(Increase) decrease from the net impact of foreign |
(1.4) |
— |
— |
159.6 |
— |
2.7 % |
Cloud computing transition adjustment |
— |
— |
— |
15.1 |
— |
0.3 % |
Normalized (decrease in) growth of expenses |
6,288.7 |
6,361.8 |
(1.1 %) |
6,371.6 |
5,884.5 |
8.3 % |
Growth of (decrease in) same-store merchandise revenues for
The tables below reconcile Merchandise and service revenues, as per IFRS Accounting Standards, to same-store merchandise revenues for
|
12-week period |
13-week period |
13-week period |
12-week period |
|
(in millions of US dollars, unless otherwise noted) |
|
|
|
|
|
Merchandise and service revenues for |
769.9 |
585.7 |
585.7 |
571.4 |
|
Adjusted for: |
|
|
|
|
|
Service revenues |
(101.3) |
(60.5) |
(60.5) |
(57.8) |
|
Net foreign exchange impact |
— |
1.8 |
— |
(17.9) |
|
Merchandise revenues not meeting the definition of same-store |
(193.6) |
(12.5) |
(25.1) |
(12.5) |
|
Same-store merchandise revenues from stores not included in our |
88.4 |
60.6 |
75.3 |
75.4 |
|
Total Same-store merchandise revenues for |
563.4 |
575.1 |
575.4 |
558.6 |
|
Growth of (decrease in) same-store merchandise revenues for |
(2.0 %) |
|
3.0 % |
|
|
|
|
|
|
|
|
|
52-week period |
53-week period |
53-week period |
52-week period |
(in millions of US dollars, unless otherwise noted) |
|
|
|
|
Merchandise and service revenues for |
2,750.3 |
2,386.7 |
2,386.7 |
2,429.1 |
Adjusted for: |
|
|
|
|
Service revenues |
(277.3) |
(200.5) |
(200.5) |
(205.0) |
Net foreign exchange impact |
— |
39.8 |
— |
(178.4) |
Merchandise revenues not meeting the definition of same-store |
(313.9) |
(51.6) |
(93.9) |
(50.5) |
Same-store merchandise revenues from stores not included in our |
324.6 |
308.0 |
332.7 |
357.1 |
Total Same-store merchandise revenues for |
2,483.7 |
2,482.4 |
2,425.0 |
2,352.3 |
Growth of same-store merchandise revenues for |
0.1 % |
|
3.1 % |
|
Earnings before interest, taxes, depreciation, amortization and impairment ("EBITDA") and adjusted EBITDA. EBITDA represents net earnings plus income taxes, net financial expenses, and depreciation, amortization and impairment. Adjusted EBITDA represents the EBITDA adjusted for acquisition costs, the impact from changes in accounting policies and adoption of accounting standards, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends. These performance measures are considered useful to facilitate the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program, share repurchases, and payment of dividends.
The table below reconciles net earnings, as per IFRS Accounting Standards, to EBITDA and adjusted EBITDA:
|
12-week period |
13-week period |
52-week period |
53-week period |
(in millions of US dollars) |
|
|
|
|
Net earnings |
454.5 |
670.7 |
2,732.2 |
3,090.9 |
Add: |
|
|
|
|
Income taxes |
51.4 |
159.6 |
715.9 |
838.2 |
Net financial expenses |
139.9 |
99.0 |
387.9 |
306.7 |
Depreciation, amortization and impairment |
492.5 |
389.6 |
1,760.1 |
1,525.9 |
EBITDA |
1,138.3 |
1,318.9 |
5,596.1 |
5,761.7 |
Adjusted for: |
|
|
|
|
Acquisition costs |
4.8 |
4.5 |
18.1 |
13.7 |
Adjusted EBITDA |
1,143.1 |
1,323.4 |
5,614.2 |
5,775.4 |
Adjusted net earnings attributable to shareholders of the Corporation and adjusted diluted net earnings per share. Adjusted net earnings attributable to shareholders of the Corporation represents net earnings attributable to shareholders of the Corporation adjusted for net foreign exchange gains or losses, acquisition costs, the impact from changes in accounting policies and adoption of accounting standards, impairment on goodwill, investments in subsidiaries, joint ventures and associated companies, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends, and the impact of the non-controlling interests on the items mentioned previously. These measures are considered useful for evaluating the underlying performance of our operations on a comparable basis.
The table below reconciles net earnings attributable to shareholders of the Corporation, as per IFRS Accounting Standards, with adjusted net earnings attributable to shareholders of the Corporation and adjusted diluted net earnings per share:
(in millions of US dollars, except per share amounts, or unless otherwise noted) |
12-week period |
13-week period |
52-week period |
53-week period |
|
|
|
|
|
Net earnings attributable to shareholders of the Corporation |
453.0 |
670.7 |
2,729.7 |
3,090.9 |
Adjusted for: |
|
|
|
|
Net foreign exchange loss (gain) |
5.2 |
(0.4) |
(6.2) |
0.7 |
Acquisition costs |
4.8 |
4.5 |
18.1 |
13.7 |
Reclassification adjustment of gain on forward starting interest rate swaps |
— |
— |
(32.9) |
— |
Impairment of our investment in Fire & Flower |
— |
— |
2.0 |
23.9 |
Loss on convertible promissory notes recorded at fair value through |
— |
26.4 |
— |
26.4 |
Tax impact of the items above and rounding |
(2.0) |
(3.2) |
5.3 |
(3.6) |
Adjusted net earnings attributable to shareholders of the Corporation |
461.0 |
698.0 |
2,716.0 |
3,152.0 |
Weighted average number of shares - diluted (in millions) |
961.5 |
985.4 |
968.2 |
1,009.5 |
Adjusted diluted net earnings per share |
0.48 |
0.71 |
2.81 |
3.12 |
Interest-bearing debt. This measure represents the sum of the following balance sheet accounts: Short-term debt and current portion of long-term debt, Long-term debt, Current portion of lease liabilities and Lease liabilities. This measure is considered useful to facilitate the understanding of our financial position in relation with financing obligations. The calculation of this measure of financial position is detailed in the "Net interest-bearing debt/total capitalization" section below.
Net interest-bearing debt/total capitalization. This measure represents the basis for monitoring our capital and is considered useful to assess our financial health, risk profile, and ability to meet our financing obligations. It also provides insights into how our financing obligations are structured in relation with our total capitalization.
The table below presents the calculation of this performance measure:
(in millions of US dollars, except ratio data) |
As at |
As at |
Short-term debt and current portion of long-term debt |
1,066.8 |
0.7 |
Current portion of lease liabilities |
503.6 |
438.1 |
Long-term debt |
9,226.5 |
5,888.3 |
Lease liabilities |
3,674.8 |
3,146.5 |
Interest-bearing debt |
14,471.7 |
9,473.6 |
Less: Cash and cash equivalents |
(1,309.0) |
(834.2) |
Net interest-bearing debt |
13,162.7 |
8,639.4 |
Equity attributable to shareholders of the Corporation |
13,189.2 |
12,564.5 |
Net interest-bearing debt |
13,162.7 |
8,639.4 |
Total capitalization |
26,351.9 |
21,203.9 |
Net interest-bearing debt to total capitalization ratio |
0.50 : 1 |
0.41 : 1 |
Leverage ratio.
This measure represents a measure of financial condition considered useful to assess our financial leverage and our ability to cover our net financing obligations in relation to our adjusted EBITDA and pro forma impact of the acquisition of certain European retail assets from TotalEnergies SE for the 52-week period ended
__________________________________ |
1
The information as at |
The table below reconciles net interest-bearing debt and adjusted EBITDA, for which the calculation methodologies are described in other tables of this section, as well as the pro forma impact of the acquisition of certain European retail assets from TotalEnergies SE, with the leverage ratio:
|
52-week period |
53-week period |
(in millions of US dollars, except ratio data) |
|
|
Net interest-bearing debt |
13,162.7 |
8,639.4 |
Adjusted EBITDA |
5,614.2 |
5,775.4 |
Pro forma adjustments(1) |
328.7 |
— |
Adjusted EBITDA and pro forma adjustments |
5,942.9 |
5,775.4 |
Leverage ratio |
2.21 : 1 |
1.50 : 1 |
(1) Represents the pre-acquisition EBITDA estimate of the European retail assets acquired from TotalEnergies SE from |
Return on equity. This measure is considered useful to assess the relationship between our profitability and our net assets and it also provides insights into how efficiently we are using our equity to generate returns for our shareholders. Average equity attributable to shareholders of the Corporation is calculated by taking the average of the opening and closing balance for the 52 and 53-week periods.
The table below reconciles net earnings attributable to shareholders of the Corporation, as per IFRS Accounting Standards, with the ratio of return on equity:
|
52-week period |
53-week period |
(in millions of US dollars, unless otherwise noted) |
|
|
Net earnings attributable to shareholders of the Corporation |
2,729.7 |
3,090.9 |
Equity attributable to shareholders of the Corporation - Opening balance |
12,564.5 |
12,437.6 |
Equity attributable to shareholders of the Corporation - Ending balance |
13,189.2 |
12,564.5 |
Average equity attributable to shareholders of the Corporation |
12,876.9 |
12,501.1 |
Return on equity |
21.2 % |
24.7 % |
__________________________________ |
|
1
The information as at |
|
Return on capital employed. This measure is considered useful as it provides insights into our ability to generate returns from the total amount of capital invested in our operations and it also helps in assessing our operational efficiency and capital allocation decisions. Earnings before interest and taxes ("EBIT") represents net earnings plus income taxes and net financial expenses. Capital employed represents total assets less short-term liabilities not bearing interest, which excludes the short-term debt and current portion of long-term debt and current portion of lease liabilities. Average capital employed is calculated by taking the average of i) the opening balance of capital employed for the 52 and 53-week periods and pro forma adjustments and ii) the ending balance of capital employed for the 52 and 53-week periods.
The table below reconciles net earnings, as per IFRS Accounting Standards, to EBIT with the ratio of return on capital employed, including the pro forma impact of the acquisition of certain European retail assets from TotalEnergies SE:
|
52-week period |
53-week period |
(in millions of US dollars, unless otherwise noted) |
|
|
Net earnings |
2,732.2 |
3,090.9 |
Add: |
|
|
Income taxes |
715.9 |
838.2 |
Net financial expenses |
387.9 |
306.7 |
EBIT |
3,836.0 |
4,235.8 |
Pro forma adjustments(1) |
142.6 |
— |
EBIT and pro forma adjustments |
3,978.6 |
4,235.8 |
Capital employed - Opening balance(2) |
24,330.7 |
24,001.0 |
Pro forma adjustments(3) |
4,766.0 |
— |
Capital employed - Opening balance and pro forma adjustments |
29,096.7 |
24,001.0 |
Capital employed - Ending balance(2) |
30,684.3 |
24,330.7 |
Average capital employed |
29,890.5 |
24,165.9 |
Return on capital employed |
13.3 % |
17.5 % |
(1) |
Represents the pre-acquisition EBIT estimate of the European retail assets acquired from TotalEnergies SE from |
(2) |
The table below reconciles balance sheet line items, as per IFRS Accounting Standards, to capital employed: |
|
|
(in millions of US dollars) |
As at |
As at |
As at |
Total Assets |
36,942.1 |
29,058.4 |
29,591.6 |
Less: Current liabilities |
(7,828.2) |
(5,166.5) |
(6,017.4) |
Add: Short-term debt and current portion of long-term debt |
1,066.8 |
0.7 |
1.4 |
Add: Current portion of lease liabilities |
503.6 |
438.1 |
425.4 |
Capital employed |
30,684.3 |
24,330.7 |
24,001.0 |
(3) |
Represents the estimated impact of the European retail assets acquired from TotalEnergies SE on the opening balance of capital employed, using the same calculation methodology and based on the preliminary estimates of the fair value of assets acquired and liabilities assumed for this acquisition at the acquisition date. |
|
|
__________________________________ |
1
The information as at |
For more information on
The statements set forth in this press release, which describes
Financial Analysts, Investors, media and any individuals interested in listening to the webcast on
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