Couche-Tard’s first financial quarter for 2025 ended on July 21. On an earnings call the retailer said that its “revenues were $18.3 billion for the first quarter of fiscal 2025, up by $2.7 billion, an increase of 17.0% compared with the corresponding quarter of fiscal 2024, mainly attributable to the contribution from acquisitions and higher revenues in our wholesale fuel business, partly offset by a lower average road transportation fuel selling price and softness in traffic as low income consumers are impacted by challenging economic conditions.”
According to the press release, total merchandise and service revenues were $4.5 billion, an increase of 5.1%. Same-store merchandise revenues decreased by 1.1% in the United States, by 2.1% in Europe and other regions and by 3.9% in Canada, all impacted by constraints on discretionary spending due to challenging economic conditions.
ACT’s gross profit was $3.2 billion for the first quarter of fiscal 2025, up by $234.7 million, or 8.0% compared with the corresponding quarter of fiscal 2024.
Couche-Tard entered into a binding agreement to acquire approximately 270 company-owned and operated convenience retail and fuel sites operating under the GetGo brand from supermarket retailer Giant Eagle Inc., “for a purchase price of approximately $1.6 billion, subject to post-closing adjustments. … The transaction, which would be financed using our available cash and/or existing credit facilities, including our United States Commercial Paper Program, is expected to close in calendar year 2025.”
Couche-Tard completed the construction of 14 new stores and the relocation or reconstruction of two stores, creating a total of 16 stores last quarter. As of July 21, 2024, another 61 stores were under construction and should open in the upcoming quarters.
"As weakness in consumer behavior persists, we are keeping our focus on our long-term strategy and bringing everyday value to our customers. The number one reason customers visit our locations is to quench their thirsts, and our summer beverage campaigns have been providing exceptional value and exciting exclusive flavors. We are also bringing personalized offers and savings to our most valuable customers through our growing loyalty membership programs. On the fuel side, while volumes have been impacted by customers watching their spend, we continued to have healthy margins. Overall, we remain confident in the advantages of our globally diversified business to successfully navigate these near-term headwinds," said Brian Hannasch, president and chief executive officer of Alimentation Couche-Tard.
"We are looking forward to bringing GetGo team members into the family and learning more about its popular made-to-order food and loyalty programs. With our strong balance sheet and customary financial discipline, we are optimistic about future deals at the right price and fit," said Hannasch.