- Net earnings were $477.7 million,
or $0.46, per diluted share for the
fourth quarter of fiscal 2022 compared with $563.9 million, or $0.52, per diluted share for the fourth quarter
of fiscal 2021. Adjusted net earnings1 were
approximately $573.0 million compared
with $564.0 million for the fourth
quarter of fiscal 2021. Adjusted diluted net earnings per
share1 were $0.55,
representing an increase of 5.8% from $0.52 for the corresponding quarter of last
year.
- Total merchandise and service revenues of $3.8 billion, an increase of 1.0%. Same-store
merchandise revenues increased by 2.3% in the United States, by 6.2% in Europe and other regions, and by 0.1% in
Canada.
- Merchandise and service gross margin increased by 1.3% in
the United States to 33.1%, by
0.2% in Europe and other regions
to 38.3%, and by 1.4% in Canada to
32.4%. Gross margin in the U.S. and Canada was favorably impacted by prior year
inventory adjustments of $26.4
million and $3.2 million,
respectively, as well as by pricing initiatives.
- Same-store road transportation fuel volumes decreased by 1.7%
in the United States, increased by
3.7% in Europe and other regions,
and increased by 4.3% in Canada.
- Road transportation fuel gross margin1 of 46.12¢ per
gallon in the United States, an
increase of 11.67¢ per gallon, and of CA 13.41¢ per liter in
Canada, an increase of CA 2.49¢
per liter. Fuel margins remained healthy throughout the North
American network, due to favorable market conditions and the
continued work on the optimization of the supply chain. In
Europe and other regions, the road
transportation fuel margin1 was US 7.51¢ per liter, a
decrease of US 3.34¢ per liter, impacted by increase in crude oil
prices, supply chain challenges from the current geopolitical
context, as well as volatility of the diesel market.
________________________________
|
1 Please
refer to the "Non-IFRS Measures" section for additional information
on performance measures not defined by IFRS.
|
Fiscal Year 2022
- Net earnings per diluted share of $2.52 compared with $2.44 for fiscal 2021, an increase of 3.3%, while
adjusted diluted net earnings per share1 were
$2.60 compared with $2.45 for fiscal 2021, an increase of 6.1%.
- Fulfillment of the Corporation's share repurchase program,
totaling $1.9 billion, including
$834.7 million during the fourth
quarter of fiscal 2022. Subsequent to the end of fiscal 2022, the
Corporation renewed its share repurchase program which allows it to
repurchase up to 10.0% of the public float. Under the renewed
program, shares for a net amount of $429.2
million were repurchased.
- Increase in the annual dividend declared for fiscal 2022 of
25.6%, from CA 33.25¢ to CA 41.75¢.
- Return on capital employed1 remained strong at
15.4%, a slight decrease from 15.9%, driven by impairment costs
incurred during the year which had a negative impact of
approximately 0.3%.
- Leverage ratio1 at 1.39 : 1, a slight increase from
1.32 : 1, driven primarily by the use of cash for share
repurchases.
- Despite its annual growth rate of expenses of 14.3%, the
Corporation has deployed strategic efforts to mitigate costs
increases and inflationary pressures, which is demonstrated by a
compound annual growth rate of 3.4% of normalized growth of
expenses compared to 2020, including employee-related
costs1, remaining below inflation.
LAVAL, QC,
June 28, 2022 /CNW
Telbec/ - For its fourth quarter ended April
24, 2022, Alimentation Couche-Tard Inc. ("Couche-Tard"
or the "Corporation") (TSX: ATD) announces net earnings of
$477.7 million, representing
$0.46 per share on a diluted
basis. The results for the fourth quarter of fiscal 2022 were
affected by a pre-tax impairment loss of $56.2 million resulting from the
deconsolidation and impairment of Russian subsidiaries, a pre-tax
impairment loss of $33.7 million on
our investment in Fire & Flower Holdings Corp., a pre-tax
expense of $15.1 million due to a
change in the accounting policy relating to cloud computing
arrangements, a pre-tax net foreign exchange gain of $3.0 million, as well as pre-tax acquisition
costs of $0.9 million. The results
for the comparable quarter of fiscal 2021 were affected by a
pre-tax expense of $29.1 million
following the delivery of an early redemption notice of senior
unsecured notes, a pre-tax gain on disposal of $26.6 million related to the sale of a property
located in Toronto, Canada,
pre-tax acquisition costs of $1.5
million, as well as by a pre-tax net foreign exchange loss
of $1.1 million. Excluding these
items, the adjusted net earnings1 were approximately
$573.0 million, or $0.55, per share on a diluted basis for the
fourth quarter of fiscal 2022, compared with $564.0 million, or $0.52, per share on a diluted basis for the
fourth quarter of fiscal 2021, an increase of 5.8% in the adjusted
diluted net earnings per share1, driven by higher
road transportation fuel margins in the
United States and Canada,
by organic growth in the convenience activities, as well as by the
favorable impact of the share repurchase program, partly offset by
higher operating expenses. All financial information presented
is in US dollars unless stated otherwise.
"We are proud to report a remarkable year despite the continued
pressures caused by the pandemic, global inflation, and staffing
challenges. With our operational and financial resilience, we had
record-breaking results across key metrics and remained focused on
our strategic goals. During the quarter, we made notable progress
accelerating organic growth both inside the store and on our
forecourts, as well as innovating for the future, including
beginning our e-mobility journey in North
America and rolling out smart checkout frictionless
technology in targeted geographies. We also started the work with
select partners to get a better understanding of our consumers'
interests in rapid delivery. I want to thank all our team members,
customers, and shareholders for their continued commitment to the
business as we prepare for an even stronger year ahead" said
Brian Hannasch, President and Chief
Executive Officer of Alimentation Couche-Tard.
"No doubt with inflation hitting 40-year record highs this
quarter, consumers have experienced pressure both at the pump and
at the checkout line. We are committed to providing good value for
our customers across the network, and through our in-store
localized pricing efforts and fuel promotions we are working hard
to make our customers' lives a little easier every day, even during
difficult economic times." concluded Brian
Hannasch.
Claude Tessier, Chief Financial
Officer, added: "Our results for both the fourth quarter and fiscal
2022 have exceeded our expectations on many fronts, especially in
light of a challenging global environment. Inflation was
particularly notable during the fourth quarter, impacting all
aspects of our business. We, once again, diligently managed through
these challenging conditions and were able to mitigate the impacts
from a higher inflation level and continued pressure on wages. We
have also continued to reinvest in our operations while maintaining
a particularly strong balance sheet, allowing us to return capital
to our shareholders during the quarter, including the completion of
our upsized 2021-2022 share repurchase program. As we look ahead to
fiscal 2023, our healthy financial position and strong capital
structure, including our newly implemented US Commercial Paper
Program, position us well to continue delivering strong results and
return further value to our shareholders as we remain focused on
our ambitious double-again strategy."
Significant Items of the Fourth Quarter of Fiscal
2022
- On April 8, 2022, as a result of
the geopolitical events leading to economic sanctions imposed from
and against Russia, as well as the
developments following our announcement that we had suspended the
operations of our 38 stores located in Russia, it was determined that we lost control
over our investment in our wholly-owned Russian subsidiaries. As a
result, an amount of $56.2 million
was recorded to Depreciation, amortization and impairment.
- On April 24, 2022, as a result of
a decrease in the market capitalization of Fire & Flower
Holdings Corp. ("Fire & Flower"), an impairment loss of
$33.7 million was recorded to bring
our investment in the associated company to its fair value.
- On April 28, 2022, subsequent to
the end of fiscal 2022, we exercised the Series B common share
warrants in Fire & Flower for a total consideration of CA
$37.8 million ($29.5 million), which increased our interests in
Fire & Flower to 35.3%.
- On April 21, 2021, the Toronto
Stock Exchange approved the implementation of a share repurchase
program (the "Program"), which took effect on April 26, 2021. The Program initially allowed us
to repurchase up to 4.0% of the Class B subordinate voting shares
of the public float as at April 19,
2021 (the "Public float"). On January
31, 2022, the Toronto Stock Exchange approved the amendment
of our Program to increase the maximum number of shares that may be
repurchased to 5.8% of the Public float.
- During the fourth quarter and fiscal 2022, we repurchased
18,969,690 and 46,806,328 shares, respectively, reaching the
Program's authorized share repurchase limit. These repurchases were
settled for amounts of $834.7 million
and $1.9 billion, respectively. On
April 22, 2022, the Toronto Stock
Exchange approved the renewal of our Program, which took effect on
April 26, 2022. The renewed Program
allows us to repurchase up to 79,703,614 shares, representing 10.0%
of the public float as of April 20,
2022, and the share repurchase period will end no later than
April 25, 2023. Subsequent to the end
of fiscal 2022, and under the renewed Program, we repurchased
9,764,000 shares for an amount of $429.2
million.
- On March 3, 2022, following the
delivery of a redemption notice dated January 31, 2022, we fully repaid our CA
$250.0 million
Canadian-dollar-denominated senior unsecured notes issued on
November 1, 2012, which were set to
mature on November 1, 2022. The
repayment of CA $254.1 million
($200.6 million) was settled using
cash on hand and included an early redemption premium of CA
$4.1 million ($3.2 million). We also settled the cross-currency
interest rate swaps associated with these
Canadian-dollar-denominated senior unsecured notes.
- Subsequent to the end of fiscal 2022, we established a
commercial paper program in the United
States on a private placement basis, which allows us to
issue, from time to time, unsecured commercial paper notes for
which the aggregate principal amount outstanding at any one time
cannot exceed $2.5 billion.
Changes in our Network during the Fourth Quarter of
Fiscal 2022
- We acquired 4 company-operated stores, reaching a total of 74
company-operated stores through various transactions since the
beginning of fiscal 2022. We settled these transactions using our
available cash.
- On March 22, 2021, based on the
outcome of a strategic review of our network, we announced our
intention to sell certain sites across 28 states in the United States and 6 provinces in
Canada. During the fourth quarter
of fiscal 2022, we completed the sale of 44 sites to various buyers
for cash consideration of $51.5
million, which resulted in a gain of $15.6 million.
- We completed the construction of 42 stores and the relocation
or reconstruction of 16 stores, reaching a total of 133 stores
since the beginning of fiscal 2022. As of April 24, 2022, another 58 stores were under
construction and should open in the upcoming quarters.
- On May 20, 2022, subsequent to
the end of fiscal 2022, we acquired, through a joint venture with
Musket Corporation, four road transportation fuel terminals located
in Florida, Illinois and North
Carolina, United
States.
Summary of changes in our store network
The following table presents certain information regarding
changes in our store network over the 12–week period ended
April 24, 2022:
|
|
|
12–week period ended
April 24, 2022
|
Type of
site
|
Company-
operated
|
|
CODO
|
|
DODO
|
|
Franchised
and other
affiliated
|
|
Total
|
Number of sites,
beginning of period
|
9,857
|
|
394
|
|
712
|
|
1,301
|
|
12,264
|
Acquisitions
|
4
|
|
—
|
|
—
|
|
—
|
|
4
|
Openings /
constructions / additions
|
42
|
|
2
|
|
12
|
|
22
|
|
78
|
Closures / disposals /
withdrawals
|
(115)
|
|
(2)
|
|
(11)
|
|
(52)
|
|
(180)
|
Store
conversions
|
20
|
|
(24)
|
|
—
|
|
4
|
|
—
|
Number of sites, end
of period
|
9,808
|
|
370
|
|
713
|
|
1,275
|
|
12,166
|
Circle K branded sites
under licensing agreements
|
|
|
|
|
|
|
|
|
1,842
|
Total
network
|
|
|
|
|
|
|
|
|
14,008
|
Number of automated
fuel stations included in the period-end
figures
|
975
|
|
—
|
|
12
|
|
—
|
|
987
|
The following table presents certain information regarding
changes in our store network over the 52–week period ended
April 24, 2022:
|
|
|
52–week period ended
April 24, 2022
|
Type of
site
|
Company-
operated
|
|
CODO
|
|
DODO
|
|
Franchised and
other affiliated
|
|
Total
|
Number of sites,
beginning of period
|
9,976
|
|
398
|
|
697
|
|
1,257
|
|
12,328
|
Acquisitions
|
74
|
|
17
|
|
22
|
|
—
|
|
113
|
Openings /
constructions / additions
|
97
|
|
5
|
|
35
|
|
117
|
|
254
|
Closures / disposals /
withdrawals
|
(382)
|
|
(8)
|
|
(35)
|
|
(104)
|
|
(529)
|
Store
conversions
|
43
|
|
(42)
|
|
(6)
|
|
5
|
|
—
|
Number of sites, end
of period
|
9,808
|
|
370
|
|
713
|
|
1,275
|
|
12,166
|
Circle K branded sites
under licensing agreements
|
|
|
|
|
|
|
|
|
1,842
|
Total
network
|
|
|
|
|
|
|
|
|
14,008
|
Change in Accounting Policy
In April 2021, the IFRS
Interpretations Committee finalized its agenda decision
Configuration or Customisation Costs in a Cloud Computing
Arrangement (IAS 38 Intangible Assets), clarifying
how to recognize certain configuration and customisation
expenditures related to cloud computing arrangements. During fiscal
2022, we finalized our assessment of the impact of this agenda
decision and changed our accounting policy to align with the
interpretation. As a result, costs previously capitalized as
intangible assets were reclassified, out of which $15.1 million were expensed to Operating,
selling, administrative and general expenses in the consolidated
statements of earnings, $6.0 million
were recognized as long-term prepaid expenses to Other assets and
$3.9 million were recognized to
Prepaid expenses on the consolidated balance sheet. We did not
apply this change in accounting policy retrospectively as its
impact was not deemed material. We expect that this change in
accounting policy will impact our future consolidated results as
the expenditures within the scope of this interpretation will be
recorded to Operating, selling, administrative and general expenses
while they were recorded to Depreciation, amortization and
impairment in the consolidated statements of earnings before this
agenda decision. We also expect timing of recognition to earnings
of those expenditures to differ following this change.
Exchange Rate Data
We use the US dollar as our reporting currency, which provides
more relevant information given the predominance of our operations
in the United States.
The following table sets forth information about exchange rates
based upon closing rates expressed as US dollars per comparative
currency unit:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
|
April 24, 2022
|
April 25, 2021
|
April 24, 2022
|
April 25, 2021
|
Average for the
period
|
|
|
|
|
Canadian
dollar
|
0.7901
|
0.7930
|
0.7978
|
0.7630
|
Norwegian
krone
|
0.1132
|
0.1178
|
0.1150
|
0.1110
|
Swedish
krone
|
0.1059
|
0.1181
|
0.1130
|
0.1141
|
Danish
krone
|
0.1492
|
0.1611
|
0.1555
|
0.1577
|
Zloty
|
0.2388
|
0.2631
|
0.2522
|
0.2610
|
Euro
|
1.1103
|
1.1979
|
1.1565
|
1.1742
|
Ruble(1)
|
0.0112
|
0.0133
|
0.0131
|
0.0135
|
Hong Kong
dollar(2)
|
0.1279
|
0.1288
|
0.1284
|
0.1289
|
|
|
|
|
|
(1)
|
For the 12 and 52-week
periods ended April 24, 2022, calculated by taking the average of
the closing exchange rates of each day, until
April 8, 2022.
|
(2)
|
For the 52-week period
ended April 25, 2021, calculated by taking the average of the
closing exchange rates of each day starting, December 21,
2020.
|
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 and Asian 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.
Summary Analysis of Consolidated Results for the Fourth
Quarter and Fiscal 2022
The following table highlights certain information regarding our
operations for the 12 and 52–week periods ended
April 24, 2022 and April 25, 2021, and the
results analysis in this section should be read in conjunction with
this table. Europe and other
regions include the results from our operations in Asia.
|
|
|
|
|
|
|
12‑week periods
ended
|
52‑week periods
ended
|
(in millions of US
dollars, unless otherwise stated)
|
April
24,
2022
|
April 25,
2021
|
Variation
%
|
April
24,
2022
|
April 25,
2021
|
Variation
%
|
Statement of
Operations Data:
|
|
|
|
|
|
|
Merchandise and service
revenues(1):
|
|
|
|
|
|
|
United
States
|
2,654.3
|
2,627.2
|
1.0
|
11,593.2
|
11,489.9
|
0.9
|
Europe and other
regions
|
571.4
|
551.9
|
3.5
|
2,429.1
|
1,830.8
|
32.7
|
Canada
|
537.3
|
545.4
|
(1.5)
|
2,581.5
|
2,552.3
|
1.1
|
Total merchandise and
service revenues
|
3,763.0
|
3,724.5
|
1.0
|
16,603.8
|
15,873.0
|
4.6
|
Road transportation
fuel revenues:
|
|
|
|
|
|
|
United
States
|
8,050.9
|
5,624.1
|
43.2
|
30,115.0
|
19,594.7
|
53.7
|
Europe and other
regions
|
2,992.2
|
1,803.0
|
66.0
|
9,892.0
|
6,295.3
|
57.1
|
Canada
|
1,333.4
|
923.1
|
44.4
|
5,344.4
|
3,515.3
|
52.0
|
Total road
transportation fuel revenues
|
12,376.5
|
8,350.2
|
48.2
|
45,351.4
|
29,405.3
|
54.2
|
Other
revenues(2):
|
|
|
|
|
|
|
United
States
|
9.4
|
10.0
|
(6.0)
|
46.2
|
44.3
|
4.3
|
Europe and other
regions
|
280.7
|
151.2
|
85.6
|
785.6
|
419.3
|
87.4
|
Canada
|
5.3
|
1.5
|
253.3
|
22.9
|
18.2
|
25.8
|
Total other
revenues
|
295.4
|
162.7
|
81.6
|
854.7
|
481.8
|
77.4
|
Total
revenues
|
16,434.9
|
12,237.4
|
34.3
|
62,809.9
|
45,760.1
|
37.3
|
Merchandise and service
gross profit(1)(3):
|
|
|
|
|
|
|
United
States
|
877.7
|
834.7
|
5.2
|
3,904.5
|
3,798.7
|
2.8
|
Europe and other
regions
|
218.6
|
210.3
|
3.9
|
927.4
|
716.2
|
29.5
|
Canada
|
174.4
|
169.2
|
3.1
|
830.2
|
800.2
|
3.7
|
Total merchandise and
service gross profit
|
1,270.7
|
1,214.2
|
4.7
|
5,662.1
|
5,315.1
|
6.5
|
Road transportation
fuel gross profit(3):
|
|
|
|
|
|
|
United
States
|
942.0
|
717.0
|
31.4
|
3,626.4
|
3,095.2
|
17.2
|
Europe and other
regions
|
191.0
|
264.3
|
(27.7)
|
1,057.7
|
1,119.7
|
(5.5)
|
Canada
|
120.5
|
94.3
|
27.8
|
493.0
|
391.6
|
25.9
|
Total road
transportation fuel gross profit
|
1,253.5
|
1,075.6
|
16.5
|
5,177.1
|
4,606.5
|
12.4
|
Other revenues gross
profit(2)(3):
|
|
|
|
|
|
|
United
States
|
9.4
|
10.7
|
(12.1)
|
46.2
|
44.2
|
4.5
|
Europe and other
regions
|
18.1
|
32.5
|
(44.3)
|
96.5
|
131.2
|
(26.4)
|
Canada
|
5.3
|
1.5
|
253.3
|
22.9
|
18.3
|
25.1
|
Total other revenues
gross profit
|
32.8
|
44.7
|
(26.6)
|
165.6
|
193.7
|
(14.5)
|
Total gross
profit(3)
|
2,557.0
|
2,334.5
|
9.5
|
11,004.8
|
10,115.3
|
8.8
|
Operating, selling,
administrative and general expenses
|
1,483.8
|
1,246.7
|
19.0
|
5,884.5
|
5,148.6
|
14.3
|
Gain on disposal of
property and equipment and other assets
|
(43.4)
|
(18.5)
|
134.6
|
(103.9)
|
(67.8)
|
53.2
|
Depreciation,
amortization and impairment
|
449.4
|
344.9
|
30.3
|
1,545.7
|
1,358.9
|
13.7
|
Operating
income
|
667.2
|
761.4
|
(12.4)
|
3,678.5
|
3,675.6
|
0.1
|
Net financial
expenses
|
51.5
|
71.7
|
(28.2)
|
281.0
|
342.5
|
(18.0)
|
Net
earnings
|
477.7
|
563.9
|
(15.3)
|
2,683.3
|
2,705.5
|
(0.8)
|
Per Share
Data:
|
|
|
|
|
|
|
Basic net earnings per
share (dollars per share)
|
0.46
|
0.52
|
(11.5)
|
2.53
|
2.45
|
3.3
|
Diluted net earnings
per share (dollars per share)
|
0.46
|
0.52
|
(11.5)
|
2.52
|
2.44
|
3.3
|
Adjusted diluted net
earnings per share (dollars per share)(3)
|
0.55
|
0.52
|
5.8
|
2.60
|
2.45
|
6.1
|
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise stated)
|
April
24,
2022
|
April 25,
2021
|
Variation
%
|
April
24,
2022
|
April 25,
2021
|
Variation
%
|
Other Operating
Data:
|
|
|
|
|
|
|
Merchandise and service
gross margin(1)(3):
|
|
|
|
|
|
|
Consolidated
|
33.8 %
|
32.6 %
|
1.2
|
34.1 %
|
33.5 %
|
0.6
|
United
States
|
33.1 %
|
31.8 %
|
1.3
|
33.7 %
|
33.1 %
|
0.6
|
Europe and other
regions
|
38.3 %
|
38.1 %
|
0.2
|
38.2 %
|
39.1 %
|
(0.9)
|
Canada
|
32.4 %
|
31.0 %
|
1.4
|
32.2 %
|
31.4 %
|
0.8
|
Growth of (decrease in)
same-store merchandise revenues(4):
|
|
|
|
|
|
|
United
States(5)(6)
|
2.3 %
|
8.1 %
|
|
1.9 %
|
5.6 %
|
|
Europe and other
regions(3)
|
6.2 %
|
9.7 %
|
|
5.9 %
|
6.1 %
|
|
Canada(5)(6)
|
0.1 %
|
1.6 %
|
|
(3.4 %)
|
9.5 %
|
|
Road transportation
fuel gross margin(3):
|
|
|
|
|
|
|
United States (cents
per gallon)
|
46.12
|
34.45
|
33.9
|
39.62
|
35.28
|
12.3
|
Europe and other
regions (cents per liter)
|
7.51
|
10.85
|
(30.8)
|
9.86
|
10.99
|
(10.3)
|
Canada (CA cents per
liter)
|
13.41
|
10.92
|
22.8
|
11.74
|
10.36
|
13.3
|
Total volume of road
transportation fuel sold:
|
|
|
|
|
|
|
United States
(millions of gallons)
|
2,042.5
|
2,081.5
|
(1.9)
|
9,152.9
|
8,772.8
|
4.3
|
Europe and other
regions (millions of liters)
|
2,542.9
|
2,436.4
|
4.4
|
10,722.7
|
10,191.8
|
5.2
|
Canada (millions of
liters)
|
1,136.9
|
1,089.6
|
4.3
|
5,264.8
|
4,952.6
|
6.3
|
Growth of (decrease in)
same-store road transportation fuel
volume(5):
|
|
|
|
|
|
|
United
States
|
(1.7 %)
|
5.4 %
|
|
4.0 %
|
(12.9 %)
|
|
Europe and other
regions
|
3.7 %
|
3.6 %
|
|
3.8 %
|
(6.4 %)
|
|
Canada
|
4.3 %
|
4.9 %
|
|
6.1 %
|
(14.9 %)
|
|
|
|
|
|
(in millions of US
dollars, unless otherwise stated)
|
As at
April 24, 2022
|
As at
April 25, 2021
|
Variation
$
|
Balance Sheet
Data:
|
|
|
|
Total
assets
|
29,591.6
|
28,394.5
|
1,197.1
|
Interest-bearing
debt(3)
|
9,439.9
|
9,602.0
|
(162.1)
|
Equity
|
12,437.6
|
12,180.9
|
256.7
|
Indebtedness
Ratios(3):
|
|
|
|
Net interest-bearing
debt/total capitalization
|
0.37 :
1
|
0.35 : 1
|
|
Leverage
ratio
|
1.39 :
1
|
1.32 : 1
|
|
Returns(3):
|
|
|
|
Return on
equity
|
21.8 %
|
24.3 %
|
|
Return on capital
employed
|
15.4 %
|
15.9 %
|
|
|
|
(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 the United States.
|
(2)
|
Includes revenues from
the rental of assets and from the sale of aviation fuel and energy
for stationary engines.
|
(3)
|
Please refer to the
"Non-IFRS measures" section for additional information on our
capital management measure as well as performance measures not
defined by IFRS.
|
(4)
|
This measure represents
the growth of (decrease in) cumulated 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.
|
Revenues
Our revenues were $16.4 billion
for the fourth quarter of fiscal 2022, up by $4.2 billion, an increase of 34.3% compared with
the corresponding quarter of fiscal 2021, mainly attributable to a
higher average road transportation fuel and other fuel products
selling price, the contribution from acquisitions, and organic
growth on merchandise and service sales while being partly offset
by the net negative impact of approximately $206.0 million from the translation of our
foreign currency operations into US dollars.
For fiscal 2022, our revenues increased by $17.0 billion, or 37.3%, compared with
fiscal 2021, mainly attributable to a higher average road
transportation fuel and other fuel products selling price, a higher
fuel demand, the contribution from acquisitions, organic
growth on merchandise and service sales, as well as the positive
impact of approximately $150.0 million from the translation of our
foreign currency operations into US dollars.
Merchandise and service revenues
Total merchandise and service revenues for the fourth quarter of
fiscal 2022 were $3.8 billion,
an increase of $38.5 million compared
with the corresponding quarter of fiscal 2021. The translation of
our foreign currency operations into US dollars had a net
negative impact of approximately $37.0 million. The remaining increase of
approximately $75.0 million, or
2.0%, is primarily attributable to organic growth, and to the
contribution from acquisitions which amounted to approximately
$27.0 million, while being
partly offset by the disposal of stores following the strategic
review of our network. Same-store merchandise revenues increased by
2.3% in the United States, by 6.2%2 in Europe and other regions, and by 0.1% in
Canada.
For fiscal 2022, the growth in merchandise and service
revenues was $730.8 million compared
with fiscal 2021. The translation of our foreign currency
operations into US dollars had a net positive impact of
approximately $108.0 million. The
remaining increase of approximately $623.0 million, or 3.9%, is mainly
attributable to similar factors as those of the fourth
quarter. Same-store merchandise revenues increased by 1.9% in
the United States, increased by
5.9%1 in Europe and
other regions, and decreased by 3.4% in Canada. On a 2-year basis, same-store
merchandise revenues increased by an annual average rate of 3.8% in
the United States,
6.0%1 in Europe and
other regions, and 3.1% in Canada.
Road transportation fuel revenues
Total road transportation fuel revenues for the fourth quarter
of fiscal 2022 were $12.4
billion, an increase of $4.0
billion compared with the corresponding quarter of fiscal
2021. The translation of our foreign currency
operations into US dollars had a net negative impact of
approximately $158.0 million.
The remaining increase of approximately $4.2 billion, or 50.1%, is attributable to a
higher average road transportation fuel selling price, which had an
impact of approximately $4.1 billion. Same-store road transportation
fuel volumes decreased by 1.7% in the
United States and increased by 3.7% in Europe and other regions, and by 4.3% in
Canada. During the quarter, road transportation fuel demand
was unfavorably impacted by the significant rise in retail prices
driven by the increase in crude oil costs as well as from continued
work from home trends.
For fiscal 2022, the road transportation fuel revenues
increased by $15.9 billion compared
with fiscal 2021. The translation of our foreign currency
operations into US dollars had a net positive impact of
approximately $49.0 million. The
remaining increase of approximately $15.9
billion, or 54.1%, is mostly due to the positive impact of
the higher average road transportation fuel selling price, and
organic growth. Same-store road transportation fuel volumes
increased by 4.0% in the United States, by 3.8% in
Europe and other regions, and by
6.1% in Canada. On a 2-year basis,
same-store road transportation fuel volumes decreased by an annual
average rate of 4.5% in the United
States, 1.3% in Europe and
other regions, and 4.4% in Canada.
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
average
|
52–week period ended
April 24, 2022
|
|
|
|
|
|
|
United States
(US dollars per gallon)
|
2.97
|
3.08
|
3.28
|
3.94
|
3.31
|
|
Europe and other
regions (US cents per liter)
|
79.09
|
86.29
|
96.66
|
120.84
|
95.89
|
|
Canada (CA cents per
liter)
|
117.51
|
123.00
|
129.39
|
150.30
|
129.60
|
52–week period ended
April 25, 2021
|
|
|
|
|
|
|
United States
(US dollars per gallon)
|
2.04
|
2.14
|
2.16
|
2.72
|
2.26
|
|
Europe and other
regions (US cents per liter)
|
56.89
|
63.19
|
65.84
|
79.29
|
66.42
|
|
Canada (CA cents per
liter)
|
86.89
|
92.00
|
92.54
|
108.99
|
94.78
|
________________________________
|
2 Please refer to the "Non-IFRS
Measures" section for additional information on performance
measures not defined by IFRS.
|
Other revenues
Total other revenues for the fourth quarter of fiscal 2022
were $295.4 million, an increase of
$132.7 million compared with the
corresponding quarter of fiscal 2021. The translation of our
foreign currency operations into US dollars had a net negative
impact of approximately $12.0
million. The remaining increase of approximately
$145.0 million, or 89.1%, is
primarily driven by higher prices and higher demand on our other
fuel products, which had a minimal impact on gross
profit1.
Total other revenues for fiscal 2022 were $854.7 million, an increase of $372.9 million compared with fiscal 2021.
The translation of our foreign currency operations into
US dollars had a net negative impact of approximately $12.0 million. The remaining increase of
approximately $385.0 million, or
79.9%, is mainly attributable to similar factors as those of the
fourth quarter, which had a minimal impact on gross
profit1.
Gross profit3
________________________________
|
3 Please refer to the "Non-IFRS
Measures" section for additional information on performance
measures not defined by IFRS.
|
Our gross profit was $2.6 billion for the fourth quarter of
fiscal 2022, up by $222.5
million or 9.5%, compared with the corresponding quarter of
fiscal 2021, mainly attributable to higher road transportation
fuel gross margins in the United
States and Canada, improved
merchandise and service gross margin, and organic growth in our
convenience activities, while being partly offset by the net
negative impact of the translation of our foreign currency
operations into US dollars of approximately $37.0 million.
For fiscal 2022, our gross profit increased by $889.5 million, or 8.8%, compared with
fiscal 2021, mainly attributable to higher road transportation
fuel gross margins in the United
States and Canada, higher
road transportation fuel demand, the contribution from
acquisitions, improved merchandise and service gross margin,
organic growth and the net positive impact of approximately
$44.0 million from
the translation of our foreign currency operations into
US dollars.
As the COVID-19 pandemic had a significant impact on our prior
year financial results, looking at gross profit on a 2-year basis
provides additional insight given the volatility in the various key
measures of our business. Excluding the disposal of CAPL and the
acquisition of Circle K Hong Kong4,
merchandise and service, as well as road transportation fuel gross
profit were higher by 10.2% and 18.2%, respectively, compared with
the annual pre-pandemic results of fiscal 2020.
Merchandise and service gross profit
In the fourth quarter of fiscal 2022, our merchandise and
service gross profit was $1.3 billion, an increase of
$56.5 million compared with the
corresponding quarter of fiscal 2021. The translation of our
foreign currency operations into US dollars had a net
negative impact of approximately $15.0 million. The remaining increase of
approximately $72.0 million, or
5.9%, is primarily due to organic growth as well as to pricing
initiatives. Our gross margin1 increased by 1.3% in the
United States to 33.1%, by 0.2% in Europe and other regions to 38.3%, and by 1.4%
in Canada to 32.4%. Gross margin
in the U.S. and Canada were also
impacted in the prior year by unfavorable inventory adjustments on
personal protective equipment of $26.4 million and $3.2 million, respectively.
During fiscal 2022, our merchandise and service gross
profit was $5.7 billion, an increase of $347.0 million compared with
fiscal 2021. The translation of our foreign currency
operations into US dollars had a net positive impact of
approximately $29.0 million. The
remaining increase of approximately $318.0 million, or 6.0%, is mainly
attributable to the contribution from acquisitions, which amounted
to approximately $148.0 million,
and to the favorable impact of changes in product mix and to
pricing initiatives. Our gross margin1 increased by 0.6%
in the United States to 33.7%,
increased by 0.8% in Canada
to 32.2%, and decreased by 0.9% in Europe and other regions to 38.2% mainly due
to the impact of the integration of Circle K Hong Kong,
which has a different product mix than our European operations.
_______________________________
|
4 On a
2-year basis, consolidated merchandise and services as well as fuel
gross profit were higher by 14.0% and 16.7%,
respectively.
|
Road transportation fuel gross profit
In the fourth quarter of fiscal 2022, our road
transportation fuel gross profit was $1.3
billion, an increase of $177.9 million compared with the
corresponding quarter of fiscal 2021. The translation of our
foreign currency operations into US dollars had a net negative
impact of approximately $19.0 million. The remaining increase in our
gross profit was approximately $197.0 million, or 18.3%. In the United States, our road transportation
fuel gross margin1 was 46.12¢ per gallon, an increase of
11.67¢ per gallon, and in Canada,
it was CA 13.41¢ per liter, an increase of CA 2.49¢ per liter. Fuel
margins remained healthy throughout our North American network, due
to favorable market conditions and the continued work on the
optimization of our supply chain. In Europe and other regions, our road
transportation fuel margin1 was US 7.51¢ per liter,
a decrease of US 3.34¢ per liter, impacted by increase in
crude oil prices, supply chain challenges from the current
geopolitical context, as well as volatility in the diesel
market.
During fiscal 2022, our road transportation fuel gross
profit was $5.2 billion, an increase of $570.6 million compared with
fiscal 2021. The translation of our foreign currency
operations into US dollars had a net positive impact of
approximately $15.0 million. The
remaining increase in our gross profit was approximately
$556.0 million, or 12.1%. The
road transportation fuel gross margin5 was 39.62¢ per
gallon in the United States,
US 9.86¢ per liter in Europe
and other regions, and CA 11.74¢ per liter in Canada.
The road transportation fuel gross margin1 of our
company-operated stores in the United
States and the impact of expenses related to electronic
payment modes for the last eight quarters, were as follows:
(US cents per
gallon)
|
|
|
|
|
|
Quarter
|
1st
|
2nd
|
3ʳᵈ
|
4ᵗʰ
|
Weighted
average
|
52–week period ended
April 24, 2022
|
|
|
|
|
|
Before deduction of
expenses related to electronic payment modes
|
37.58
|
37.68
|
41.02
|
47.55
|
40.87
|
Expenses related to
electronic payment modes(1)
|
5.38
|
5.31
|
5.74
|
6.61
|
5.75
|
After deduction of
expenses related to electronic payment modes
|
32.20
|
32.37
|
35.28
|
40.94
|
35.12
|
52–week period ended
April 25, 2021
|
|
|
|
|
|
Before deduction of
expenses related to electronic payment modes
|
42.99
|
37.48
|
31.86
|
35.25
|
36.48
|
Expenses related to
electronic payment modes(1)
|
4.88
|
4.79
|
4.66
|
5.10
|
4.84
|
After deduction of
expenses related to electronic payment modes
|
38.11
|
32.69
|
27.20
|
30.15
|
31.64
|
|
|
(1)
|
Expenses related to
electronic payment modes are determined by allocating the portion
of total electronic payment modes, which are included in Operating,
selling, administrative and general expenses, deemed related to our
United-States company-operated stores road transportation fuel
transactions.
|
Generally, during normal economic cycles, road transportation
fuel margins in the United States can be volatile from one
quarter to another, while in Europe and other regions and in Canada, fuel margins and expenses related to
electronic payment modes are not as volatile.
Other revenues gross profit
In the fourth quarter of fiscal 2022, other revenues gross
profit was $32.8 million, a decrease
of $11.9 million compared with the
corresponding period of fiscal 2021. The translation of our foreign
currency operations into US dollars had a net negative impact of
approximately $2.0 million.
During fiscal 2022, other revenues gross profit was $165.6 million, a decrease of $28.1 million compared with fiscal 2021. The
translation of our foreign currency operations into US dollars had
a net negative impact of approximately $1.0
million. The remaining decrease of approximately
$27.0 million, or 13.9%, is primarily
due to lower margins on our other fuel products.
________________________________
|
5 Please refer to the "Non-IFRS
Measures" section for additional information on performance
measures not defined by IFRS.
|
Operating, selling, administrative and general expenses
("expenses")
For the fourth quarter and fiscal 2022, expenses increased
by 19.0% and 14.3%, respectively, compared with the corresponding
periods of fiscal 2021. Normalized growth of
expenses1 was 15.6% and 9.4%, respectively, as show in
the table below:
|
|
|
|
12–week period
ended
April 24, 2022
|
52–week period
ended
April 24, 2022
|
Growth of expenses,
as reported
|
19.0 %
|
14.3 %
|
Adjusted
for:
|
|
|
Increase from higher
electronic payment fees, excluding acquisitions
|
(3.1 %)
|
(2.6 %)
|
Decrease (increase)
from the net impact of foreign exchange translation
|
1.7 %
|
(0.3 %)
|
Cloud computing
transition adjustment
|
(1.2 %)
|
(0.3 %)
|
Increase from
incremental expenses related to acquisitions
|
(0.8 %)
|
(1.8 %)
|
Decrease from changes
in acquisition costs recognized to earnings
|
—
|
0.1 %
|
Normalized growth of
expenses1
|
15.6 %
|
9.4 %
|
The normalized growth of expenses1 in the fourth
quarter was mainly driven by government grants of $41.0 million in the corresponding quarter of the
previous fiscal year, measures necessitated by the impact of the
labor shortage and the need to improve employee retention, an
increase of marketing initiatives and other discretionary expenses
that were significantly reduced in the prior year quarter,
inflationary pressures, including higher utility costs in
Europe, higher costs from rising
minimum wages, as well as by incremental investments in our stores
to support our strategic initiatives. This increase was partly
offset by lower COVID-19 related expenses compared to the
corresponding quarter of the previous fiscal year. The costs of the
retention measures implemented during the fiscal year, which
totaled approximately $19.0 million
for the fourth quarter of fiscal 2022, the employee-related
COVID-19 costs in the corresponding quarter of the previous fiscal
year, such as Thank you bonuses of $5.2
million, as well as the government grants, represented an
increase in expenses of 4.3% for the fourth quarter of fiscal
2022.
For fiscal 2022, we have deployed strategic efforts in
order to mitigate the impacts of a higher inflation level and
continued pressure on wages, which is demonstrated by a
compound annual growth rate of 3.4% of our normalized growth of
expenses compared to 2020, including employee-related
costs1, below inflation, despite the challenging market
conditions.
________________________________
|
1 Please refer to the "Non-IFRS
Measures" section for additional information on performance
measures not defined by IFRS.
|
Earnings before interest, taxes, depreciation, amortization
and impairment ("EBITDA[6]") and adjusted
EBITDA1
During the fourth quarter of fiscal 2022, EBITDA stood at
$1.1 billion, an increase of
0.9% compared with the corresponding quarter of fiscal 2021.
Adjusted EBITDA for the fourth quarter of fiscal 2022
increased by $50.8 million, or
4.7%, compared with the corresponding quarter of fiscal
2021, mainly due to higher road transportation fuel margins in
the United States and in
Canada, and organic growth in our
convenience operations, partly offset by higher operating expenses.
The translation of our foreign currency operations into US
dollars had a net negative impact of approximately $15.0 million.
During fiscal 2022, EBITDA increased from $5.1 billion to $5.2
billion, an increase of 3.6% compared with fiscal 2021.
Adjusted EBITDA for fiscal 2022 increased by $261.3 million, or 5.2%, compared with fiscal
2021, mainly attributable to higher road transportation fuel
margins in the United States and
in Canada, higher road
transportation fuel demand, organic growth for our convenience
operations, as well as the contribution from acquisitions. The
translation of our foreign currency operations into US dollars had
a net positive impact of approximately $27.0
million.
Depreciation, amortization and impairment
("depreciation")
For the fourth quarter of fiscal 2022, our depreciation
expense increased by $104.5 million compared with the fourth
quarter of fiscal 2021. The translation of our foreign
currency operations into US dollars had a net favorable impact
of approximately $7.0 million.
The remaining increase of approximately $111.0 million, or 32.2%, is mainly driven
by the impact of the deconsolidation and the impairment of our
Russian subsidiaries of $56.2 million, the impairment on our
investment in Fire & Flower of $33.7 million, as well as by the impact from
investments made through acquisitions, the replacement of
equipment, and the ongoing improvement of our network.
For fiscal 2022, our depreciation expense increased by
$186.8 million compared with
fiscal 2021. The translation of our foreign currency
operations into US dollars had a net unfavorable impact of
approximately $7.0 million. The
remaining increase of approximately $180.0 million, or 13.2%, is mainly
attributable to similar factors as those of the fourth quarter.
Net financial expenses
Net financial expenses for the fourth quarter and
fiscal 2022 were $51.5 million and $281.0 million, respectively, a decrease of
$20.2 million and $61.5 million compared with the
corresponding periods of fiscal 2021. A portion of the decrease is
explained by certain items that are not considered indicative of
future trends, as shown in the table below:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars)
|
April 24,
2022
|
April 25,
2021
|
Variation
|
April 24,
2022
|
April 25,
2021
|
Variation
|
Net financial
expenses, as reported
|
51.5
|
71.7
|
(20.2)
|
281.0
|
342.5
|
(61.5)
|
Explained
by:
|
|
|
|
|
|
|
Change in fair value
of financial instruments and
amortization of deferred differences
|
18.5
|
21.0
|
(2.5)
|
8.9
|
26.8
|
(17.9)
|
Impact of the
redemption notice of senior unsecured
notes
|
(3.2)
|
(29.1)
|
25.9
|
(3.2)
|
(29.1)
|
25.9
|
Net foreign exchange
gain (loss)
|
3.0
|
(1.1)
|
4.1
|
20.7
|
(44.9)
|
65.6
|
Impact from conversion
of a portion of our convertible
debentures in Fire & Flower
|
—
|
13.1
|
(13.1)
|
—
|
13.1
|
(13.1)
|
Remaining
variation
|
69.8
|
75.6
|
(5.8)
|
307.4
|
308.4
|
(1.0)
|
Income taxes
The income tax rate for the fourth quarter of fiscal 2022
was 22.6% compared with 18.5% for the corresponding period of
fiscal 2021.
The income tax rate for fiscal 2022 was 21.5% compared with
19.5% for fiscal 2021. The increase is mainly stemming from
the impact of gains and losses taxable or deductible at a lower
income tax rate between current and prior year, and a different mix
in our earnings across the various jurisdictions in which we
operate.
Net earnings and adjusted net earnings1
Net earnings for the fourth quarter of fiscal 2022 were
$477.7 million, compared with
$563.9 million for the fourth
quarter of the previous fiscal year, a decrease of $86.2 million, or 15.3%. Diluted net
earnings per share stood at $0.46,
compared with $0.52 for the
corresponding quarter of the previous fiscal year. The translation
of revenues and expenses from our foreign currency
operations into US dollars had a net negative impact of
approximately $8.0 million on
net earnings of the fourth quarter of fiscal 2022.
Adjusted net earnings for the fourth quarter of fiscal 2022
were approximately $573.0 million, compared with $564.0 million for the fourth quarter of
fiscal 2021, an increase of $9.0 million, or 1.6%. Adjusted diluted net
earnings per share7 were $0.55 for the fourth quarter of fiscal 2022,
compared with $0.52 for the
corresponding quarter of fiscal 2021, an increase of 5.8%.
For fiscal 2022, net earnings stood at $2.7 billion, a decrease of $22.2 million or 0.8%, compared with
fiscal 2021. Diluted net earnings per share stood at
$2.52, compared with $2.44 for the previous fiscal year. The
translation of revenues and expenses from our foreign currency
operations into US dollars had a net positive impact of
approximately $20.0 million on
net earnings of fiscal 2022.
Adjusted net earnings for fiscal 2022 stood at $2.8 billion, an increase of $54.0 million or 2.0%, compared with
fiscal 2021. Adjusted diluted net earnings per
share1 were $2.60 for
fiscal 2022, compared with $2.45
for fiscal 2021, an increase of 6.1%.
________________________________
|
1 Please refer to the "Non-IFRS
Measures" section for additional information on performance
measures not defined by IFRS.
|
Dividends
During its June 28, 2022 meeting, the Board of
Directors declared a quarterly dividend of CA 11.00¢ per share
for the fourth quarter of fiscal 2022 to shareholders on
record as at July 8, 2022, and approved its payment
effective July 22, 2022. This is an eligible dividend
within the meaning of the Income Tax Act (Canada).
For fiscal 2022, the Board of Directors declared total dividends
of CA 41.75¢ per share, an increase of 25.6% compared with
CA 33.25¢ for fiscal 2021.
Lead Director of the Board of Directors
Couche-Tard also announced today that its Board of Directors has
unanimously appointed Louis Vachon
as the Lead Director effective June 28,
2022. Mr. Vachon, an independent director of the Company
since September 2021, succeeds
Mélanie Kau who is stepping down as Lead Director, but who will
remain on the Board of Directors. Alain
Bouchard, Executive Chairman of the Board of Directors said,
"The Board's unanimous selection of Mr. Vachon to the Lead Director
role is a testament to his leadership and expertise, and the
Board's continuous commitment to rigorous oversight and sound
governance practices. We welcome Mr. Vachon to this new role and
thank his predecessor, Mélanie Kau, for her many years of service
to the Board and to our Company as its Lead Director."
Non-IFRS Measures
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 ("non-IFRS measures"), which are also calculated on an
adjusted basis to exclude specific items. We believe that providing
those non-IFRS measures is useful to management, investors, and
analysts, as they provide additional information to measure the
performance and financial position of the Corporation.
The following non-IFRS measures are used in our financial
disclosures:
- Gross profit;
- Interest-bearing debt;
- Earnings before interest, taxes, depreciation, amortization and
impairment ("EBITDA") and adjusted EBITDA; and
- Adjusted net earnings.
The following non-IFRS ratios are used in our financial
disclosures:
- Merchandise and service gross margin and Road transportation
fuel gross margin;
- Normalized growth of operating, selling, administrative and
general expenses;
- Normalized growth of operating, selling, administrative and
general expenses compared to fiscal 2020, including normalized
employee-related costs;
- Growth of same-store merchandise revenues for Europe and other regions;
- Adjusted diluted net earnings per share;
- Leverage ratio; and
- 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 measures and ratios, as well as the capital management
measure ("Non-IFRS measures") are mainly derived from the
consolidated financial statements, but do not have standardized
meanings prescribed by IFRS. These non-IFRS measures should not be
considered in isolation or as a substitute for financial measures
prepared in accordance with IFRS. In addition, our definitions of
non-IFRS 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 to gross profit:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars)
|
April 24,
2022
|
April 25,
2021
|
April 24,
2022
|
April 25,
2021
|
Revenues
|
16,434.9
|
12,237.4
|
62,809.9
|
45,760.1
|
Cost of sales,
excluding depreciation, amortization and impairment
|
13,877.9
|
9,902.9
|
51,805.1
|
35,644.8
|
Gross
profit
|
2,557.0
|
2,334.5
|
11,004.8
|
10,115.3
|
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
being 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 the United States
and Europe and other regions, both
measures being presented in the section ''Summary Analysis of
Consolidated Results''. For Canada, this measure is presented in
functional currency and the table below reconciles, for road
transportation fuel, Revenues and Cost of sales, excluding
depreciation, amortization and impairment to gross profit and the
resulting road transportation fuel gross margin. This measure is
considered useful for evaluating how efficiently we generate gross
profit by gallon or liter of road transportation fuel sold.
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of
Canadian dollars, unless otherwise noted)
|
April 24,
2022
|
April 25,
2021
|
April 24,
2022
|
April 25,
2021
|
Road transportation
fuel revenues
|
1,686.8
|
1,163.8
|
6,703.8
|
4,596.5
|
Road transportation
fuel cost of sales, excluding depreciation, amortization and
impairment
|
1,534.3
|
1,044.8
|
6,085.5
|
4,083.5
|
Road transportation
fuel gross profit
|
152.5
|
119.0
|
618.3
|
513.0
|
Total road
transportation fuel volume sold
|
1,136.9
|
1,089.6
|
5,264.8
|
4,952.6
|
Road transportation
fuel gross margin (CA cents per liter)
|
13.41
|
10.92
|
11.74
|
10.36
|
Normalized growth of operating, selling, administrative and
general expenses ("normalized growth of
expenses"). Normalized growth of expenses consists of the
growth of Operating, selling, administrative and
general expenses adjusted for the impact of the changes in our
network, the impact of more volatile items over which we have
limited control as well as the impact from changes in accounting
policies and adoption of accounting standards. 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,
administrative and general expenses to normalized growth of
expenses:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 24,
2022
|
April 25,
2021
|
Variation
|
April 24, 2022
|
April 25,
2021
|
Variation
|
Operating, selling,
administrative and general expenses, as published
|
1,483.8
|
1,246.7
|
19.0 %
|
5,884.5
|
5,148.6
|
14.3 %
|
Adjusted
for:
|
|
|
|
|
|
|
Increase from higher
electronic payment fees, excluding acquisitions
|
(39.2)
|
—
|
(3.1 %)
|
(135.6)
|
—
|
(2.6 %)
|
(Decrease) Increase
from the net impact of foreign exchange translation
|
—
|
(21.2)
|
1.7 %
|
—
|
17.4
|
(0.3 %)
|
Cloud computing
transition adjustment
|
(15.1)
|
—
|
(1.2 %)
|
(15.1)
|
—
|
(0.3 %)
|
Increase from
incremental expenses related to acquisitions
|
(9.6)
|
—
|
(0.8 %)
|
(90.8)
|
—
|
(1.8 %)
|
Decrease from changes
in acquisition costs recognized to earnings
|
0.6
|
—
|
—
|
5.1
|
—
|
0.1 %
|
Normalized growth of
expenses
|
1,420.5
|
1,225.5
|
15.6 %
|
5,648.1
|
5,166.0
|
9.4 %
|
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 25,
2021
|
April 26, 2020
|
Variation
|
April 25,
2021
|
April 26, 2020
|
Variation
|
Operating, selling,
administrative and general expenses, as published
|
1,246.7
|
1,209.8
|
3.1 %
|
5,148.6
|
5,227.3
|
(1.5 %)
|
Adjusted
for:
|
|
|
|
|
|
|
Increase from the net
impact of foreign exchange translation
|
—
|
40.2
|
(3.3 %)
|
—
|
66.9
|
(1.3 %)
|
Increase from
incremental expenses related to acquisitions
|
(26.1)
|
—
|
(2.2 %)
|
(48.2)
|
—
|
(0.9 %)
|
(Increase) decrease
from higher or lower electronic payment fees, excluding
acquisitions
|
(11.0)
|
—
|
(0.9 %)
|
68.0
|
—
|
1.3 %
|
Impact from the
December 2018 asset exchange agreement with CAPL, net of electronic
payment fees
|
4.2
|
—
|
0.3 %
|
22.3
|
—
|
0.4 %
|
Increase (decrease)
from changes in acquisition costs recognized to earnings
|
1.4
|
—
|
0.1 %
|
(5.0)
|
—
|
(0.1 %)
|
Decrease from the
disposal of our interests in CAPL
|
—
|
—
|
—
|
46.8
|
—
|
0.9 %
|
Normalized decrease
of expenses
|
1,215.2
|
1,250.0
|
(2.9 %)
|
5,232.5
|
5,294.2
|
(1.2 %)
|
Normalized growth of operating, selling, administrative and
general expenses compared to fiscal 2020, including normalized
employee-related costs ("normalized growth of expenses compared to
2020, including employee-related costs"). Normalized
growth of expenses compared to fiscal 2020, including
employee-related costs consists of the growth of Operating,
selling, administrative and general expenses compared to
fiscal 2020 adjusted for the impact of the changes in our network,
employee-related costs that are not deemed indicative of future
trends, the impact of more volatile items over which we have
limited control as well as the impact from changes in accounting
policies and adoption of accounting standards. This measure is
considered useful for evaluating our ability to control our
expenses on a comparable basis and against a fiscal year that was
subject to limited volatility.
The tables below reconcile growth of Operating, selling,
administrative and general expenses to normalized growth of
expenses compared to 2020, including employee-related costs:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 24,
2022
|
April 26, 2020
|
Variation
|
April 24, 2022
|
April 26, 2020
|
Variation
|
Operating, selling,
administrative and general expenses, as published
|
1,483.8
|
1,209.8
|
22.6 %
|
5,884.5
|
5,227.3
|
12.6 %
|
Adjusted
for:
|
|
|
|
|
|
|
Increase from higher
electronic payment fees, excluding acquisitions
|
(49.5)
|
—
|
(4.1 %)
|
(68.0)
|
—
|
(1.3 %)
|
Increase from
incremental expenses related to acquisitions
|
(35.7)
|
—
|
(3.0 %)
|
(139.0)
|
—
|
(2.7 %)
|
COVID-19
employee-related costs of the corresponding periods of fiscal
2020
|
27.8
|
—
|
2.3 %
|
27.8
|
—
|
0.5 %
|
Employee retention
measures of current year
|
(18.9)
|
—
|
(1.6 %)
|
(80.9)
|
—
|
(1.5 %)
|
Increase from the net
impact of foreign exchange translation
|
—
|
19.5
|
(1.6 %)
|
—
|
88.5
|
(1.7 %)
|
Cloud computing
transition adjustment
|
(15.1)
|
—
|
(1.2 %)
|
(15.1)
|
—
|
(0.3 %)
|
Impact from the
December 2018 asset exchange agreement with CAPL, net of electronic
payment fees
|
4.2
|
—
|
0.3 %
|
22.3
|
—
|
0.4 %
|
Decrease from changes
in acquisition costs recognized to earnings
|
2.0
|
—
|
0.1 %
|
0.1
|
—
|
—
|
Decrease from the
disposal of our interests in CAPL
|
—
|
—
|
—
|
46.8
|
—
|
0.9 %
|
Normalized growth of
expenses compared to 2020, including
employee-related costs
|
1,398.6
|
1,229.3
|
13.8 %
|
5,678.5
|
5,315.8
|
6.9 %
|
Compound annual
growth rate
|
|
|
6.8 %
|
|
|
3.4 %
|
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 25,
2021
|
April 26, 2020
|
Variation
|
April 25,
2021
|
April 26, 2020
|
Variation
|
Operating, selling,
administrative and general expenses, as published
|
1,246.7
|
1,209.8
|
3.1 %
|
5,148.6
|
5,227.3
|
(1.5 %)
|
Adjusted
for:
|
|
|
|
|
|
|
Impact from government
grants in fiscal 2021
|
41.0
|
—
|
3.4 %
|
51.1
|
—
|
1.0 %
|
Increase from the net
impact of foreign exchange translation
|
—
|
40.2
|
(3.3 %)
|
—
|
66.9
|
(1.3 %)
|
Increase from
incremental expenses related to acquisitions
|
(26.1)
|
—
|
(2.2 %)
|
(48.2)
|
—
|
(0.9 %)
|
Decrease (increase)
from changes in COVID-19 employee-related costs
|
22.6
|
—
|
1.9 %
|
(44.4)
|
—
|
(0.8 %)
|
(Increase) decrease
from higher or lower electronic payment fees, excluding
acquisitions
|
(11.0)
|
—
|
(0.9 %)
|
68.0
|
—
|
1.3 %
|
Impact from the
December 2018 asset exchange agreement with CAPL, net of electronic
payment fees
|
4.2
|
—
|
0.3 %
|
22.3
|
—
|
0.4 %
|
Decrease (increase)
from changes in acquisition costs recognized to earnings
|
1.4
|
—
|
0.1 %
|
(5.0)
|
—
|
(0.1 %)
|
Decrease from the
disposal of our interests in CAPL
|
—
|
—
|
—
|
46.8
|
—
|
0.9 %
|
Normalized growth of
expenses compared to 2020, including
employee-related costs
|
1,278.8
|
1,250.0
|
2.4 %
|
5,239.2
|
5,294.2
|
(1.0 %)
|
Growth of same-store merchandise revenues for Europe and other regions. Same-store
merchandise revenues represent cumulated 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. For
Europe and other regions, the
growth of same-store merchandise revenues is calculated based on
constant currencies using the respective current period average
exchange rate for both the current and corresponding period. In
Europe and other regions,
same-store merchandise revenues include same-store revenues from
company-operated stores, CODO and DODO stores, as well as Asian
corporate stores prior to their acquisition date of December 21, 2020. These last two items are not
included in our consolidated results. This measure is considered
useful for evaluating our ability to generate organic growth on a
comparable basis in our overall European and other regions store
network.
The tables below reconcile Merchandise and service revenues to
same-store merchandise revenues for Europe and other regions and the resulting
percentage of growth :
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 24, 2022
|
April 25, 2021
|
April 24, 2022
|
April 25, 2021
|
Merchandise and service
revenues for Europe and other regions
|
571.4
|
551.9
|
2,429.1
|
1,830.8
|
Adjusted
for:
|
|
|
|
|
Service
revenues
|
(57.8)
|
(55.0)
|
(205.0)
|
(178.4)
|
Net foreign exchange
impact
|
—
|
(30.0)
|
—
|
(21.9)
|
Merchandise revenues
for stores not meeting the definition of same-store
|
(71.8)
|
(50.7)
|
(147.2)
|
(152.0)
|
Same-store merchandises
revenues from stores not included in our consolidated
results
|
78.8
|
74.0
|
400.0
|
859.7
|
Total Same-store
merchandise revenues for Europe and other regions
|
520.6
|
490.2
|
2,476.9
|
2,338.2
|
Growth of same-store
merchandise revenues for Europe and other regions
|
6.2 %
|
|
5.9 %
|
|
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 25, 2021
|
April 26, 2020
|
April 25, 2021
|
April 26, 2020
|
Merchandise and service
revenues for Europe and other regions
|
551.9
|
312.9
|
1,830.8
|
1,416.3
|
Adjusted
for:
|
|
|
|
|
Service
revenues
|
(55.0)
|
(36.8)
|
(178.4)
|
(144.3)
|
Net foreign exchange
impact
|
—
|
31.4
|
—
|
81.9
|
Merchandise revenues
for stores not meeting the definition of same-store
|
(30.7)
|
(20.8)
|
(33.2)
|
(9.6)
|
Same-store merchandises
revenues from stores not included in our consolidated
results
|
95.3
|
225.0
|
437.4
|
593.6
|
Total Same-store
merchandise revenues for Europe and other regions
|
561.5
|
511.7
|
2,056.6
|
1,937.9
|
Growth of same-store
merchandise revenues for Europe and other regions
|
9.7%
|
|
6.1%
|
|
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 EBITDA adjusted for acquisition costs and 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, to EBITDA
and adjusted EBITDA:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars)
|
April 24,
2022
|
April 25,
2021
|
April 24,
2022
|
April 25,
2021
|
Net earnings, as
reported
|
477.7
|
563.9
|
2,683.3
|
2,705.5
|
Add:
|
|
|
|
|
Income
taxes
|
139.2
|
127.6
|
734.3
|
653.6
|
Net financial
expenses
|
51.5
|
71.7
|
281.0
|
342.5
|
Depreciation,
amortization and impairment
|
449.4
|
344.9
|
1,545.7
|
1,358.9
|
EBITDA
|
1,117.8
|
1,108.1
|
5,244.3
|
5,060.5
|
Adjusted
for:
|
|
|
|
|
Cloud computing
transition adjustment
|
15.1
|
—
|
15.1
|
—
|
Acquisition
costs
|
0.9
|
1.5
|
6.7
|
11.8
|
Gain on disposal of
properties
|
—
|
(26.6)
|
—
|
(67.5)
|
Adjusted
EBITDA
|
1,133.8
|
1,083.0
|
5,266.1
|
5,004.8
|
Adjusted net earnings and adjusted diluted net earnings per
share. Adjusted net earnings represents net earnings
adjusted for net foreign exchange gains or losses, acquisition
costs and other specific items for which the impact on consolidated
results is not deemed indicative of future trends. These measures
are considered useful for evaluating the underlying performance of
our operations on a comparable basis.
The table below reconciles reported net earnings, as per IFRS,
with adjusted net earnings and adjusted diluted net earnings per
share:
|
|
|
|
12–week periods
ended
|
52–week periods
ended
|
(in millions of US
dollars, except per share amounts, or unless otherwise
noted)
|
April 24, 2022
|
April 25,
2021
|
April 24, 2022
|
April 25,
2021
|
Net earnings, as
reported
|
477.7
|
563.9
|
2,683.3
|
2,705.5
|
Adjusted
for:
|
|
|
|
|
Impairment and impact
of deconsolidation of Russian subsidiaries
|
56.2
|
—
|
56.2
|
—
|
Impairment of our
investment in Fire & Flower
|
33.7
|
—
|
33.7
|
—
|
Cloud computing
transition adjustment
|
15.1
|
—
|
15.1
|
—
|
Net foreign exchange
(gain) loss
|
(3.0)
|
1.1
|
(20.7)
|
44.9
|
Acquisition
costs
|
0.9
|
1.5
|
6.7
|
11.8
|
Impact of the
redemption notice of senior unsecured notes
|
—
|
29.1
|
—
|
29.1
|
Gain on disposal of
properties
|
—
|
(26.6)
|
—
|
(67.5)
|
Tax impact of the
items above and rounding
|
(7.6)
|
(5.0)
|
(4.3)
|
(7.8)
|
Adjusted net
earnings
|
573.0
|
564.0
|
2,770.0
|
2,716.0
|
Weighted average number
of shares - diluted (in millions)
|
1,046.1
|
1,086.5
|
1,063.5
|
1,106.7
|
Adjusted diluted net
earnings per share
|
0.55
|
0.52
|
2.60
|
2.45
|
Interest-bearing debt. This measure represents
the sum of the following balance sheet accounts: 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 as well as
a measure of financial condition that is especially used in
financial circles.
The table below presents the calculation of this performance
measure:
|
|
|
(in millions of US
dollars, except ratio data)
|
As at
April 24, 2022
|
As at
April 25, 2021
|
Current portion of
long-term debt
|
1.4
|
1,107.3
|
Current portion of
lease liabilities
|
425.4
|
419.4
|
Long-term
debt
|
5,963.6
|
5,282.6
|
Lease
liabilities
|
3,049.5
|
2,792.7
|
Interest-bearing
debt
|
9,439.9
|
9,602.0
|
Less: Cash and cash
equivalents
|
2,143.9
|
3,015.8
|
Net interest-bearing
debt
|
7,296.0
|
6,586.2
|
Equity
|
12,437.6
|
12,180.9
|
Net interest-bearing
debt
|
7,296.0
|
6,586.2
|
Total
capitalization
|
19,733.6
|
18,767.1
|
Net interest-bearing
debt to total capitalization ratio
|
0.37 :
1
|
0.35 : 1
|
Leverage ratio. This measure represents a measure of
financial condition that is especially used in financial
circles.
The table below reconciles net interest-bearing debt and
adjusted EBITDA, for which the calculation methodologies are
described in other tables of this section, with the leverage
ratio:
|
|
|
52-week periods
ended
|
(in millions of US
dollars, except ratio data)
|
April 24, 2022
|
April 25, 2021
|
Net interest-bearing
debt
|
7,296.0
|
6,586.2
|
Adjusted
EBITDA
|
5,266.1
|
5,004.8
|
Leverage
ratio
|
1.39 :
1
|
1.32 : 1
|
Return on equity. This measure is used to measure
the relation between our profitability and our net assets. Average
equity is calculated by taking the average of the opening and
closing balance for the 52-week period.
The table below reconciles net earnings, as per IFRS, with the
ratio of return on equity:
|
|
|
52-week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 24, 2022
|
April 25, 2021
|
Net
earnings
|
2,683.3
|
2,705.5
|
Equity - Opening
balance
|
12,180.9
|
10,066.6
|
Equity - Ending
balance
|
12,437.6
|
12,180.9
|
Average
equity
|
12,309.3
|
11,123.8
|
Return on
equity
|
21.8 %
|
24.3 %
|
Return on capital employed. This measure is used to
measure the relation between our profitability and capital
efficiency. 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 current portion of long-term
debt and current portion of lease liabilities. Average capital
employed is calculated by taking the average of the beginning and
ending balance of capital employed for the 52-week period.
The table below reconciles net earnings, as per IFRS, to EBIT
with the ratio of return on capital employed:
|
|
|
52-week periods
ended
|
(in millions of US
dollars, unless otherwise noted)
|
April 24, 2022
|
April 25, 2021
|
Net earnings
|
2,683.3
|
2,705.5
|
Add:
|
|
|
Income
taxes
|
734.3
|
653.6
|
Net financial
expenses
|
281.0
|
342.5
|
EBIT
|
3,698.6
|
3,701.6
|
Capital employed -
Opening balance(1)
|
23,971.5
|
22,533.0
|
Capital employed -
Ending balance(1)
|
24,001.0
|
23,971.5
|
Average capital
employed
|
23,986.3
|
23,252.3
|
Return on capital
employed
|
15.4 %
|
15.9 %
|
(1) The following table reconciles
balance sheet line items, as per IFRS, to capital employed:
|
|
|
|
(in millions of US
dollars)
|
As at
April 24, 2022
|
As at
April 25, 2021
|
As at
April 26, 2020
|
Total Assets
|
29,591.6
|
28,394.5
|
25,679.5
|
Less: Current
liabilities
|
(6,017.4)
|
(5,949.7)
|
(3,744.3)
|
Add: Current portion
of long-term debt
|
1.4
|
1,107.3
|
214.7
|
Add: Current portion
of lease liabilities
|
425.4
|
419.4
|
383.1
|
Capital
employed
|
24,001.0
|
23,971.5
|
22,533.0
|
Profile
Couche-Tard is a global leader in convenience and fuel retail,
operating in 24 countries and territories, with more than
14,000 stores, of which approximately 10,700 offer road
transportation fuel. With its well-known Couche-Tard and
Circle K banners, it is one of the largest independent
convenience store operators in the United States and it is a
leader in the convenience store industry and road transportation
fuel retail in Canada,
Scandinavia, the Baltics, as well as in Ireland. It also has an important presence in
Poland and Hong Kong SAR.
Approximately 122,000 people are employed throughout its
network.
For more information on Alimentation Couche-Tard Inc. or to
consult its annual Consolidated Financial Statements and Management
Discussion and Analysis, please visit:
https://corpo.couche-tard.com.
The statements set forth in this press release, which describes
Couche-Tard's objectives, projections, estimates, expectations, or
forecasts, may constitute forward-looking statements within the
meaning of securities legislation. Positive or negative verbs such
as "believe", "can", "shall", "intend", "expect", "estimate",
"assume", and other related expressions are used to identify such
statements. Couche-Tard would like to point out that, by their very
nature, forward-looking statements involve risks and uncertainties
such that its results, or the measures it adopts, could differ
materially from those indicated in or underlying these statements,
or could have an impact on the degree of realization of a
particular projection. Major factors that may lead to a material
difference between Couche-Tard's actual results and the projections
or expectations set forth in the forward-looking statements include
the effects of the integration of acquired businesses and the
ability to achieve projected synergies, uncertainty related to the
duration and severity of the current COVID-19 pandemic,
fluctuations in margins on motor fuel sales, competition in the
convenience store and retail motor fuel industries, exchange rate
variations, and such other risks as described in detail from time
to time in the reports filed by Couche-Tard with securities
authorities in Canada and
the United States. Unless
otherwise required by applicable securities laws, Couche-Tard
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The forward-looking information in this
release is based on information available as of the date of the
release.
Webcast on June 29, 2022, at 8:00
A.M. (EDT)
Couche-Tard invites analysts known to the Corporation to ask
their questions to its management on June 29, 2022, during the
question and answer period of the webcast.
Financial Analysts, Investors, media and any individuals
interested in listening to the webcast on Couche-Tard's results,
which will take place online on June 29, 2022, at 8:00
A.M. (EDT) can do so by either accessing the Corporation's
website at https://corpo.couche-tard.com/en and by clicking in the
"Investors/Events & Presentations" section or by dialing
1-888-390-0549 or the international number 1-416-764-8682, followed
by the access code 37095248#.
Rebroadcast: For individuals who will not be able to
listen to the live webcast, a recording of the webcast will be
available on the Corporation's website for a period of 90 days.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/alimentation-couche-tard-announces-its-results-for-its-fourth-quarter-and-fiscal-year-2022-301577385.html
SOURCE Alimentation Couche-Tard Inc.