The Quebec giant Couche-Tard thinks that smokers are turning more to contraband cigarettes, which has the effect of lowering their sales in this category.
• Read also: The war in Ukraine cost Couche-Tard US$56 million
• Read also: Couche-Tard will deploy 10,000 self-service checkouts within 3 years
“In Canada, we saw a little more pressure in the cigarette category. There seems to be a change because of the black market, “said Claude Tessier, Couche-Tard’s chief financial officer, at the investor conference on Wednesday.
Later in the call, analysts returned to the charge asking regarding this new phenomenon.
“There is a resurgence in the black market. I think these are temporary pressures due to inflation and prices in general for consumers. They’re probably grabbing some market share,” said Couche-Tard CEO Brian Hannasch.
According to the number 1 of Couche-Tard, there might also have been, here and in the United States, a greater consumption of tobacco during the pandemic.
“Since it reopened, people may be smoking a little less,” observed Brian Hannasch.
Declining profits
Separately, the convenience store giant reported net income of US$477.7 million for the fourth quarter of 2022, compared to US$563.9 million in 2021, an amount down 15.3%.
More broadly, Couche-Tard posted net income of US$2.68 billion for its fiscal year 2022, down slightly by 0.8% from the cumulative US$2.71 billion in fiscal year 2021.
-With the collaboration of QMI Agency
