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Alex Miller, Chief Operating Officer of Alimentation Couche-Tard Inc. (Canada’s most valuable retailer ), has been appointed CEO. The company is exploring more merger and acquisition deals.
Miller, who has worked for the company for almost 13 years, is set to take over on Sept. 6, when Brian Hannasch steps down. Miller will become the third CEO of the company in its nearly 45-year history.
After reporting a lower-than-expected profit due to weaker fuel sales, Couche-Tard announced the management shakeup on June 26.
The shares of the Quebec-based company fell by as much as 5,7% intraday, their largest intraday drop in three month.
The earnings per share of 48 Canadian dollars was below analyst expectations for the fiscal fourth quarter ending April 28. Revenue was C$17.6 Billion ($12.9 Billion), which was ahead of expectations.
Fuel revenue in the U.S. fell 8.8% compared to a year ago due to lower demand. Fuel volumes also decreased in North America and Europe. Fuel sales are the main source of revenue for the retailer.
Hannasch told analysts on a conference call that “we’re seeing a lower quantity per visit” as a sign that people are watching what they spend.
Couche-Tard saw a decline in same-store merchandise sales as well, as consumers reduced discretionary spending due to inflation. He said that the cigarette category was under pressure as consumers began to turn to illicit alternatives.
Recently, TotalEnergies SE acquired European gas stations.
Hannasch said the company has identified a number of potential European and North American deal opportunities and expects to close a few within the next quarter.
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