(Reuters) - Alimentation Couche-Tard Inc (ATDb.TO) topped analysts’ quarterly profit estimate on Monday as the world’s second-biggest convenience store operator benefited from higher fuel sales and its acquisitions.
Total revenue from the Canadian company’s fuel retail business jumped 48 percent to about $10 billion on higher fuel prices in the fourth quarter ended April 29.
Chief Executive Officer Brian Hannasch said U.S. fuel margins rebounded during the quarter and helped the company end fiscal 2018 with margins up 4.5 percent from a year earlier.
Couche-Tard agreed to buy Texas-based CST in August 2016 for $4.4 billion but won U.S. antitrust approval almost a year later on condition to sell up to 71 stores in eight states.
With CST, the company said on Monday it realized synergies of about $153 million in less than a year, surpassing its own expectations.
The company also completed its $1.6 billion purchase of Holiday Stationstores in the third quarter this year.
Net income attributable rose to $392.7 million, or 70 cents per share, from $277.6 million, or 49 cents per share, a year earlier.
Excluding one-time items, the company earned 59 cents per share, beating analysts’ average estimate of 55 cents, according to Thomson Reuters I/B/E/S.
Total revenue jumped to $13.61 billion from $9.62 billion.
Reporting by Karan Nagarkatti and Arjun Pancahdar in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila