The focus on acquisitions comes as the Quebec-based chain behind the Couche-Tard and Circle K banners is preparing for only its second CEO shuffle in its almost 45-year history and battling an economic landscape where customers are proving cash-strapped and less likely to spend.
When is Couche-Tard’s new CEO taking over?
The company said Wednesday that Hannasch, who has been with the firm for 10 years, will retire on Sept. 6. When chief operating officer Alex Miller takes over the top job, Hannasch will become a special adviser to his successor and the executive chair of the company’s board, tasked with assisting with mergers and acquisitions.
News of Hannasch’s future came the same day the company hosted a call to discuss its fourth-quarter performance with analysts. During the period ended April 28, the chain saw its net earnings attributable to shareholders tumble to $453 million from $670.7 million a year earlier.
RBC Capital Markets analyst Irene Nattel described the results as “not a quarter for the history books,” but said it was “a better outcome” than the company had seen in its prior quarter.
Couche-Tard blamed the results on lower gross margins on fuel, the quarter being a week shorter than last year, and expenses and depreciation related to investments and acquisitions, but said the period was also marked with economic headwinds.
The effects of less consumer spending
“No doubt, this was another challenging quarter with persistent inflation and continued pressure on consumers who are carefully watching their spending,” Hannasch said.
On the fuel front, he has noticed customers buying lower amounts per visit. Inside stores, there’s been a gravitation toward private label products and shoppers trading down from premium to lower tier brands in categories like alcohol.
Cigarette sales have also been “an issue,” he said.
