- 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% inthe United States , by 6.2% inEurope and other regions, and by 0.1% inCanada . - Merchandise and service gross margin increased by 1.3% in
the United States to 33.1%, by 0.2% inEurope and other regions to 38.3%, and by 1.4% inCanada to 32.4%. Gross margin in theU.S. andCanada 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% inEurope and other regions, and increased by 4.3% inCanada . - 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 inCanada , 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. InEurope 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,
"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
"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
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 againstRussia , as well as the developments following our announcement that we had suspended the operations of our 38 stores located inRussia , 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 , theToronto Stock Exchange approved the implementation of a share repurchase program (the "Program"), which took effect onApril 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 atApril 19, 2021 (the "Public float"). OnJanuary 31, 2022 , theToronto 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. OnApril 22, 2022 , theToronto Stock Exchange approved the renewal of our Program, which took effect onApril 26, 2022 . The renewed Program allows us to repurchase up to 79,703,614 shares, representing 10.0% of the public float as ofApril 20, 2022 , and the share repurchase period will end no later thanApril 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 datedJanuary 31, 2022 , we fully repaid our CA$250.0 million Canadian-dollar-denominated senior unsecured notes issued onNovember 1, 2012 , which were set to mature onNovember 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 inthe United States and 6 provinces inCanada . 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 withMusket Corporation , four road transportation fuel terminals located inFlorida ,Illinois andNorth 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
12–week period ended | |||||||||
Type of site | Company- | CODO | DODO | Franchised and | 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 | ||||
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
52–week period ended | |||||||||
Type of site | Company- | CODO | DODO | Franchised and | 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 | ||||
1,842 | |||||||||
Total network | 14,008 |
Change in Accounting Policy
In
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 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 | |||
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 |
0.1279 | 0.1288 | 0.1284 | 0.1289 | |
(1) | For the 12 and 52-week periods ended |
(2) | For the 52-week period ended |
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
12‑week periods ended | 52‑week periods ended | |||||
(in millions of US dollars, unless otherwise stated) | 2022 | 2021 | Variation % | 2022 | 2021 | Variation % |
Statement of Operations Data: | ||||||
Merchandise and service revenues(1): | ||||||
2,654.3 | 2,627.2 | 1.0 | 11,593.2 | 11,489.9 | 0.9 | |
571.4 | 551.9 | 3.5 | 2,429.1 | 1,830.8 | 32.7 | |
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: | ||||||
8,050.9 | 5,624.1 | 43.2 | 30,115.0 | 19,594.7 | 53.7 | |
2,992.2 | 1,803.0 | 66.0 | 9,892.0 | 6,295.3 | 57.1 | |
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): | ||||||
9.4 | 10.0 | (6.0) | 46.2 | 44.3 | 4.3 | |
280.7 | 151.2 | 85.6 | 785.6 | 419.3 | 87.4 | |
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): | ||||||
877.7 | 834.7 | 5.2 | 3,904.5 | 3,798.7 | 2.8 | |
218.6 | 210.3 | 3.9 | 927.4 | 716.2 | 29.5 | |
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): | ||||||
942.0 | 717.0 | 31.4 | 3,626.4 | 3,095.2 | 17.2 | |
191.0 | 264.3 | (27.7) | 1,057.7 | 1,119.7 | (5.5) | |
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): | ||||||
9.4 | 10.7 | (12.1) | 46.2 | 44.2 | 4.5 | |
18.1 | 32.5 | (44.3) | 96.5 | 131.2 | (26.4) | |
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) | 2022 | 2021 | Variation % | 2022 | 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 |
33.1 % | 31.8 % | 1.3 | 33.7 % | 33.1 % | 0.6 | |
38.3 % | 38.1 % | 0.2 | 38.2 % | 39.1 % | (0.9) | |
32.4 % | 31.0 % | 1.4 | 32.2 % | 31.4 % | 0.8 | |
Growth of (decrease in) same-store merchandise revenues(4): | ||||||
2.3 % | 8.1 % | 1.9 % | 5.6 % | |||
6.2 % | 9.7 % | 5.9 % | 6.1 % | |||
0.1 % | 1.6 % | (3.4 %) | 9.5 % | |||
Road transportation fuel gross margin(3): | ||||||
46.12 | 34.45 | 33.9 | 39.62 | 35.28 | 12.3 | |
7.51 | 10.85 | (30.8) | 9.86 | 10.99 | (10.3) | |
13.41 | 10.92 | 22.8 | 11.74 | 10.36 | 13.3 | |
Total volume of road transportation fuel sold: | ||||||
2,042.5 | 2,081.5 | (1.9) | 9,152.9 | 8,772.8 | 4.3 | |
2,542.9 | 2,436.4 | 4.4 | 10,722.7 | 10,191.8 | 5.2 | |
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): | ||||||
(1.7 %) | 5.4 % | 4.0 % | (12.9 %) | |||
3.7 % | 3.6 % | 3.8 % | (6.4 %) | |||
4.3 % | 4.9 % | 6.1 % | (14.9 %) |
(in millions of US dollars, unless otherwise stated) | As at | As at | 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 |
(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
For fiscal 2022, our revenues increased by
Merchandise and service revenues
Total merchandise and service revenues for the fourth quarter of fiscal 2022 were
For fiscal 2022, the growth in merchandise and service revenues was
Road transportation fuel revenues
Total road transportation fuel revenues for the fourth quarter of fiscal 2022 were
For fiscal 2022, the road transportation fuel revenues increased by
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) | 2.97 | 3.08 | 3.28 | 3.94 | 3.31 | |
79.09 | 86.29 | 96.66 | 120.84 | 95.89 | ||
117.51 | 123.00 | 129.39 | 150.30 | 129.60 | ||
52–week period ended | ||||||
United States (US dollars per gallon) | 2.04 | 2.14 | 2.16 | 2.72 | 2.26 | |
56.89 | 63.19 | 65.84 | 79.29 | 66.42 | ||
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
Total other revenues for fiscal 2022 were
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
For fiscal 2022, our gross profit increased by
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
During fiscal 2022, our merchandise and service gross profit was $5.7 billion, an increase of
_______________________________ |
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
During fiscal 2022, our road transportation fuel gross profit was $5.2 billion, an increase 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 | 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 | |||||
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 |
Generally, during normal economic cycles, road transportation fuel margins in the United States can be volatile from one quarter to another, while in
Other revenues gross profit
In the fourth quarter of fiscal 2022, other revenues gross profit was
During fiscal 2022, other revenues gross profit was
________________________________ |
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 | 52–week period ended | |
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
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
During fiscal 2022, EBITDA increased from
Depreciation, amortization and impairment ("depreciation")
For the fourth quarter of fiscal 2022, our depreciation expense increased by
For fiscal 2022, our depreciation expense increased by
Net financial expenses
Net financial expenses for the fourth quarter and fiscal 2022 were
12–week periods ended | 52–week periods ended | |||||
(in millions of US dollars) | Variation | 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 | 18.5 | 21.0 | (2.5) | 8.9 | 26.8 | (17.9) |
Impact of the redemption notice of senior unsecured | (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 | — | 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
Adjusted net earnings for the fourth quarter of fiscal 2022 were approximately
For fiscal 2022, net earnings stood at
Adjusted net earnings for fiscal 2022 stood at
________________________________ |
1 Please refer to the "Non-IFRS Measures" section for additional information on performance measures not defined by IFRS. |
Dividends
During its
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
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) | ||||
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
12–week periods ended | 52–week periods ended | |||
(in millions of Canadian dollars, unless otherwise noted) | ||||
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 | 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) | Variation | April 24, 2022 | 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 26, 2020 | Variation | 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 | 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 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 | 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 26, 2020 | Variation | 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 | 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
The tables below reconcile Merchandise and service revenues to same-store merchandise revenues for
12–week periods ended | 52–week periods ended | |||
(in millions of US dollars, unless otherwise noted) | ||||
Merchandise and service revenues for | 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 | 520.6 | 490.2 | 2,476.9 | 2,338.2 |
Growth of same-store merchandise revenues for | 6.2 % | 5.9 % |
12–week periods ended | 52–week periods ended | |||
(in millions of US dollars, unless otherwise noted) | ||||
Merchandise and service revenues for | 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 | 561.5 | 511.7 | 2,056.6 | 1,937.9 |
Growth of same-store merchandise revenues for | 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) | ||||
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) | ||||
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 | As at |
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) | ||
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) | ||
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) | ||
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 | As at | As at |
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 |
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