Alimentation Couche-Tard Inc. (TSX: ATD.B) reported on Tuesday its financial performance for the fiscal second quarter ending October 10, 2021. The results highlighted a quarterly revenue of US$14.2 billion, an increase from Q1 2022’s revenue of US$13.6 billion and Q2 2021’s revenue of US$10.7 billion.
Breaking down the topline revenue figure, transportation fuel revenue contributed US$10.1 billion, merchandise and service revenue contributed US$4.0 billion while the remaining US$163.4 million came from other revenues. The company relayed that the revenue boost is mainly attributable to a higher average road transportation fuel price, higher fuel demand, as well as the net positive impact of translating its revenues to US dollars.
However, the gross margin came in at 18.2%, down from last quarter’s 19.1% and last year’s 23.1%. Operating margin also declined to 6.6% from 7.7% last quarter and 9.6% last year.
The net earnings for the quarter ended at US$694.8 million compared to US$764.4 million in the previous quarter and compared to US$757.0 million for the same period last year. This translates to US$0.65 earnings per share.
Calibrating for financial items, adjusted EBITDA for the quarter came in at US$1.28 billion, marginally down from last quarter’s US$1.36 billion and last year’s US$1.29 billion.
The company ended the quarter with a cash and cash equivalents balance of US$3.26 billion coming from a starting balance of US$3.44 billion. This led to a current assets balance of US$7.8 billion while its current liabilities ended at US$5.1 billion.
In October, the firm repurchased class B shares from its executive chairman Alain Bouchard for approximately $300 million.
Alimentation Couche-Tard last traded at $50.98 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.