Circle K’s owner Alimentation Couche-Tard has reported a 1.6% increase in revenue in its merchandise and service division in the third quarter, it was announced today.
Alimentation Couche-Tard operates Circle K forecourts across Europe and other regions, with 420 sites in Ireland.
Profits
The group reported merchandise and service revenues of $5 billion (€4.6 billion) in the measured period.
However, same-store revenues were down 1.5% in the US and by 1.2% in Canada.
They were also down by 0.3% in Europe and other regions.
Gross profit in the merchandise and service division was $1.7 billion (€1.56 billion) in the third quarter.
This was an increase of $52.5 million (€48.34 million) compared to the same period last year.
A majority of the increase is due to acquisitions. The group said acquisitions “amounted to approximately $75 million (€69 million) while being partly offset by softness in traffic”.
Gross margins in the division rose 1.9 percentage points to 39.2%.
In Canada they also rose 1.9 percentage points to 34.2%, but declined slightly in the US to 33.1%.
Acquisitions
In January, the operator completed the acquisition of European retail assets from TotalEnergies.
The expansion stretched to four new countries, bringing in close to 22,000 team members and 2,175 sites into operation.
The president and chief executive of Alimentation Couche-Tard Brian Hannasch said the group was pleased with its progress.
He said, “We are pleased this quarter with the significant growth of our network.
“We have a strong track record of successful integrations and realisation of synergies and are pleased of how the transition is progressing.
“We have identified local leadership, opened our first Circle K branded location in Berlin, and are working closely with our new, but highly engaged teams.
He concluded, “We are also advancing nicely on the integration of our 112 MAPCO sites, and we continue to grow our pipeline of new to industry locations.”
Alimentation Couche-Tard’s operations span 29 countries and territories. With 16,700 stores around the world, it has a presence in the US, Poland, Ireland, Hong Kong, Canada, Scandinavia and the Baltics.
It has recently expanded to Belgium, Germany, Luxembourg and the Netherlands.
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