Calgary-based fuel retailer Parkland Corp. lowers 2024 earnings forecast as consumer demand falls

Fuel retailer and convenience shop usability Parkland Corp. lowered its net forecast for nan twelvemonth Thursday owed to what it said are” ongoing weaknesses” successful user request that could proceed done nan extremity of 2024.

The Calgary-headquartered institution revised its guidance for adjusted net earlier interest, taxes, depreciation and amortization for nan twelvemonth to $1.9 billion, down from $2 billion.

Part of nan little forecast is owed to impacts from nan unplanned shutdown of Parkland’s Burnaby, B.C. refinery during nan first quarter, nan institution said.

But main financial serviceman Marcel Teunissen told analysts connected a convention telephone Thursday that nan wide economical situation has negatively impacted nan company’s sales.

In Canada, nan company’s nutrient and convenience shop gross profit decreased 2 per cent year-over-year, while its substance volumes declined 4 per cent.

In nan U.S., Parkland’s substance volumes were down 13 per cent year-over-year, though its nutrient and convenience shop gross profit increased.

“Retail consumers are emotion stretched, pinch wide discretionary spending down,” Teunissen said.

Teunissen added unit substance measurement request was weaker peculiarly successful June arsenic nan commencement of nan driving play was slowed by cool weather.

In B.C., wherever nan value of gasoline was nan highest successful Canada, Parkland saw its largest substance waste measurement declines.

In total, nan institution said it earned $70 cardinal successful nan 2nd quarter, down from $78 cardinal a twelvemonth earlier.

Its income and operating gross was $7.5 billion, down from $7.8 cardinal during nan aforesaid 4th successful 2023.

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Diluted net per stock were 39 cents, down from 43 cents past year.

A agleam spot connected nan sky for Parkland is nan Ontario government’s move to grow beer, vino and different ready-to-drink alcoholic beverage income to convenience stores.

“Our retailing partners are very excited astir this opportunity,” said CEO Bob Espey.

“We do spot nan rollout of brew and vino successful Ontario arsenic a awesome opportunity for Parkland that should really commencement to thrust immoderate bully same-store income growth,” he said, adding nan institution has identified up to 120 convenience shop locations successful that state wherever it could waste alcohol.

“We expect this will go a apical class for america and thief bring much consumers into our stores wherever we tin cross-promote different items,” Teunissen added.