LAVAL, Que. – Alimentation Couche-Tard Inc. (TSX:ATD.B) raised its dividend as it reported a profit of US$324.0 million for its latest quarter, down 22 per cent from a year ago.
The company upped its quarterly dividend by 1.25 cents or 16 per cent to nine cents per share.
The increase came as the convenience store chain, which reports in U.S. dollars, said its second-quarter profit amounted to 57 cents per diluted share, down from $415.7 million or 73 cents per diluted share in the comparable period a year earlier.
The company said the drop was a result of various factors including a boost from the sale of its lubricants business last year.
After adjustments in both years, Couche-Tard says it earned $331 million or 58 cents per diluted share in its latest quarter compared with $375 million or 66 cents per diluted share a year ago, when it benefited from unusually high fuel margins in the United States.
Revenue for the 12-weeks ended Oct. 9 totalled $8.4 billion, up $8.7 million or 0.1 per cent from a year ago.
The company’s Canadian banners include Mac’s, but it’s switching to Circle K as its global brand everywhere but Quebec, where Couche-Tard will remain the company’s main banner.