Canada's Couche-Tard quarterly profit beats on higher fuel sales

FILE PHOTO: Pedestrians walk past a Couche-Tard convenience store in Montreal, April 18, 2012. REUTERS/Christinne Muschi/File Photo

(Reuters) - Alimentation Couche-Tard Inc ATDb.TO reported a quarterly profit that topped analysts' estimates on Wednesday as the world's second-biggest convenience store operator benefited from higher fuel sales.

The company’s same-store fuel volumes rose 0.6 percent in the United States, its biggest market, while same-store merchandise revenue was up 4.2 percent.

Couch-Tard’s fuel retail business, which includes more than 8,000 outlets in the United States, rose 59.8 percent to $11 billion.

Revenue from its convenience stores, which include brands such as CST, Holiday and Circle K, rose 27.6 percent to $3.55 billion.

Couch-Tard bought Texas-based CST in August 2016 for $4.4 billion to expand its footprint in the southwestern United States.

Net income attributable to the company rose to $455.6 million, or 81 cents per share, in the first quarter ended July 22 from $364.7 million, or 64 cents per share, a year earlier.

Total revenue rose 50.2 percent to $14.79 billion.

Excluding items, the company earned 88 cents per share.

Analysts, on average, were expecting the company to report a profit of 82 cents and revenue of $13.87 billion, according to Thomson Reuters I/B/E/S.

Reporting by Laharee Chatterjee in Bengaluru; Editing by Shailesh Kuber