Mr. Brian Hannasch reports

ALIMENTATION COUCHE-TARD ANNOUNCES ITS RESULTS FOR ITS SECOND QUARTER OF FISCAL YEAR 2024

For its second quarter ended Oct. 15, 2023, Alimentation Couche-Tard Inc. had net earnings of $819.2-million, representing 85 cents per share on a diluted basis, compared with $810.4-million for the corresponding quarter of fiscal 2023, representing 79 cents per share on a diluted basis. The results for the second quarter of fiscal 2024 were affected by a pretax reclassification adjustment of gain on forward starting interest rate swaps of $32.9-million, by a pretax net foreign exchange gain of $6.3-million, by pretax acquisition costs of $4.2-million, as well as a pretax impairment loss of $2.0-million on its investment in Fire & Flower Holdings Corp. The results for the comparable quarter of fiscal 2023 were affected by a pretax impairment loss of $23.9-million on its investment in Fire & Flower Holdings, by pretax acquisition costs of $5.3-million, as well as by a pretax net foreign exchange gain of $1.5-million. Excluding these items, the adjusted net earnings (1) were approximately $792.0-million or 82 cents per share on a diluted basis for the second quarter of fiscal 2024, compared with $838.0-million or 82 cents per share on a diluted basis for the corresponding quarter of fiscal 2023. Adjusted diluted net earnings per share (1) remained stable as the favourable impact of the share repurchase program, the contribution from acquisitions and the increase in merchandise and service gross margin (1) were offset by higher depreciation as the corporation continues to invest in its network, higher net financial expenses as well as a higher income tax rate. All financial information presented is in U.S. dollars unless stated otherwise.

Highlights:

• Net earnings were $819.2-million or 85 cents per diluted share for the second quarter of fiscal 2024, compared with $810.4-million or 79 cents per diluted share for the second quarter of fiscal 2023. Adjusted net earnings (1) were approximately $792.0-million, compared with $838.0-million for the second quarter of fiscal 2023. Adjusted diluted net earnings per share (1) were 82 cents, unchanged compared with the corresponding quarter of last year.
• Total merchandise and service revenues were $4.1-billion, an increase of 1.0 per cent. Same-store merchandise revenues (2) decreased by 0.1 per cent in the United States and by 0.2 per cent in Europe and other regions (1), and increased by 1.6 per cent in Canada.
• Merchandise and service gross margin (1) increased by 0.8 per cent in the United States to 34.8 per cent, impacted favourably by a change in product mix and the improvement of the company's Fresh Food, Fast program gross margin (1). Merchandise and service gross margin (1) increased by 0.3 per cent in Europe and other regions to 38.6 per cent, and remained stable in Canada at 33.2 per cent. Total consolidated merchandise and service gross profit (1) increased by 2.8 per cent, compared with the corresponding quarter of fiscal 2023.
• Same-store road transportation fuel volumes decreased by 1.5 per cent in the United States and by 0.9 per cent in Europe and other regions, and increased by 3.0 per cent in Canada.
• Road transportation fuel gross margin (1) was 49.56 cents per gallon in the United States, an increase of 0.40 cent per gallon, 10.20 U.S. cents per litre in Europe and other regions, an increase of 0.44 U.S. cent per litre, and 13.63 Canadian cents per litre in Canada, an increase of $1.08 (Canadian) per litre. Total consolidated fuel gross profit (1) increased by 2.1 per cent, compared with the corresponding quarter of fiscal 2023.
• Growth of expenses for the second quarter of fiscal 2024 was 2.5 per cent while normalized growth of expenses (1) was 1.5 per cent, remaining below the average inflation observed throughout the corporation's network.
• The corporation successfully issued Canadian-dollar-denominated senior unsecured notes in the amount of $800.0-million (Canadian) ($595.5-million). During the quarter, the corporation's long-term senior unsecured rating was upgraded from BBB to BBB plus by S&P Global Ratings.
• Subsequent to the end of the quarter, the corporation closed the acquisition of 112 company-owned and operated convenience retail and fuel sites in the United States.

(1) Please refer to the non-IFRS (international financial reporting standards) measures section for additional information on performance measures not defined by IFRS.

(2) This measure represents the growth of (decrease in) cumulative merchandise revenues between the current period and comparative period for those stores that were open for at least 23 days out of every 28-day period included in the reported periods. Merchandise revenues are merchandise and service revenues excluding service revenues.

"We are pleased to announce a solid second quarter with good progress across most of our key metrics, although we did see softening in same-store sales in the U.S., driven by weakness in the cigarette category and cycled against a robust second quarter, up 5.6 per cent, last year. In an environment with continued inflation and high interest rates, we remain committed to offering compelling value and ease. We have substantially expanded the rollout of our Inner Circle membership program, which is now in seven U.S. business units covering close to 3,000 locations with over 2.7 million fully enrolled, providing meaningful convenience and fuel rewards to our most valuable customers. As America's Thirst Stop, we are focused on the growth of our beverage category by offering great assortment, innovation and value in both packaged and dispensed beverages at affordable price points. We also continue to be pleased with the performance of our fuel business, in terms of both volumes and margins, as we continue to bring traffic to our sites through reoccurring promotional fuel days," said Brian Hannasch, president and chief executive officer of Alimentation Couche-Tard.

"Following the announcement of our 10 For The Win five-year strategy, we are excited by the recent developments in the growth of our network. In the beginning of November, we closed on the acquisition of 112 MAPCO sites, accelerating our development in key markets in Alabama, Georgia, Kentucky, Mississippi and Tennessee, and adding approximately 1,300 team members to the Alimentation Couche-Tard family. We also recently received an important decision by the European Commission, allowing us to move closer to an end of calendar year completion of our game-changing acquisition of TotalEnergies in four new European countries. On the organic front, we are making progress on our stated goal of building 500 stores over the next five years, having already finished more than 40 new stores this fiscal year with considerably more in the pipeline that are either currently under or starting construction in the upcoming months," concluded Mr. Hannasch.

Filipe Da Silva, chief financial officer, added: "It gives me great pleasure to share that our focused efforts in managing costs are yielding tangible benefits. This quarter, we've successfully kept the growth of our normalized expenses (3) to a modest 1.5 per cent, a figure that stands well below the average current rate of inflation affecting our operations. This is a clear indication of our team's dedication to efficiently operate and deliver value to our shareholders, even amidst widespread economic challenges. Our ability to surpass expectations on this financial indicator demonstrates our commitment to financial discipline and operational excellence. Additionally, with the recent issuance of seven-year senior unsecured notes for a principal amount of $800.0-million (Canadian), we've further strengthened our capital structure, ensuring it remains robust and effective."

Significant items of the second quarter of fiscal 2024:

• During the second quarter and first half of fiscal 2024, the company repurchased 13.6 million and 18.2 million shares, for amounts of $672.9-million and $902.9-million, respectively. Subsequent to the end of the quarter, the company repurchased 300,000 shares for an amount of $15.7-million.
• On Sept. 25, 2023, the company issued Canadian-dollar-denominated senior unsecured notes totalling $800.0-million (Canadian) ($595.5-million) with a coupon rate of 5.59 per cent, an effective rate of 5.70 per cent, and maturing on Sept. 25, 2030. The $591.9-million of net proceeds from the issuance were used for corporate purposes and to invest an amount of $700.0-million (Canadian) ($511.7-million as at Oct. 15, 2023) in term deposits, which will mature on July 23, 2024.
• As a result of the issuance of those Canadian-dollar-denominated senior unsecured notes, the company determined that an anticipated issuance of U.S.-dollar-denominated senior unsecured notes, for which the proceeds were intended to be used for the repayment of the Canadian-dollar-denominated senior unsecured notes maturing in July, 2024, was no longer expected to occur. The company had designated specific forward starting interest rate swaps as a cash flow hedge of its interest rate risk related to the variability of the interest payments on the anticipated issuance, which led to a pretax reclassification adjustment gain of $32.9-million from other comprehensive loss to other financial items in the consolidated statement of earnings.
• In June, 2023, Fire & Flower received an order for creditor protection under the Companies' Creditors Arrangement Act and the Ontario Superior Court of Justice approved a sales and investment solicitation process (SISP), pursuant to which one of the company's wholly owned subsidiaries was acting as stalking horse bidder. On Aug. 15, 2023, an auction was held in accordance with the SISP and the company's wholly owned subsidiary was not the successful bidder. The transaction contemplated by the successful bid was completed on Sept. 15, 2023, and as a result, the principal and accrued interests related to a $9.8-million (Canadian) ($7.2-million) debtor-in-possession loan and an $11.0-million (Canadian) ($8.0-million) secured loan, which were granted to Fire & Flower, were repaid, and the company's ownership interest in Fire & Flower was cancelled. During the second quarter and first half of fiscal 2024, losses of $2.0-million and $3.5-million, respectively, were recorded, bringing the carrying amount of the company's ownership interest in Fire & Flower to nil.

(3) Please refer to the non-IFRS measures section for additional information on performance measures not defined by IFRS.

Changes in the company's network during the second quarter of fiscal 2024:

• On Nov. 1, 2023, subsequent to the end of the quarter, the company closed the acquisition of 112 company-owned and operated convenience retail and fuel sites operating under the MAPCO brand and located in the states of Alabama, Georgia, Kentucky, Mississippi and Tennessee in the United States. The acquisition also includes surplus properties and a logistics fleet. The transaction was settled for a consideration of $471.0-million, subject to postclosing adjustments, and was financed using the company's available cash and its United States commercial paper program.
• On July 7, 2023, the company reached an agreement to acquire 2,193 sites from TotalEnergies SE for a total cash consideration of approximately 3.1 billion euros ($3.4-billion). Subsequent to the end of the quarter, the company has received a decision from the European Commission not to oppose the acquisition. It expects the transaction to close before the end of calendar year 2023 and it remains subject to customary closing conditions.
• The company acquired six company-operated stores, reaching a total of 10 company-operated stores acquired through various transactions since the beginning of fiscal 2024. It settled these transactions using its available cash.
• The company completed the construction of 19 stores and the relocation or reconstruction of four stores, reaching a total of 42 stores since the beginning of fiscal 2024. As of Oct. 15, 2023, another 50 stores were under construction and should open in the upcoming quarters.

Summary of changes in Alimentation Couche-Tard store network

An attached table presents certain information regarding changes in the company's store network over the 12-week period ended Oct. 15, 2023.

Exchange rate data

The company uses the U.S. dollar as its reporting currency, which provides more relevant information given the predominance of the company's operations in the United States.

An attached table sets forth information about exchange rates based upon closing rates expressed as U.S. dollars per comparative currency unit.

For the analysis of consolidated results, the impact of the translation of the company's foreign currency operations into U.S. dollars is defined as the impact from the translation of its Canadian, European, Asian and corporate operations into U.S. dollars. Variances of the company's foreign currency operations into U.S. dollars are determined as being the difference between the corresponding-period results in local currencies translated at the current-period average exchange rate and the corresponding-period results in local currencies translated at the corresponding-period average exchange rate.

Summary analysis of consolidated results for the second quarter and first half of fiscal 2024

An attached table highlights certain information regarding the company's operations for the 12- and 24-week periods ended Oct. 15, 2023, and Oct. 9, 2022, and the results analysis in this section should be read in conjunction with this table. The results from the company's operations in Europe and Asia are presented together as Europe and other regions.

Revenues

The company's revenues were $16.4-billion for the second quarter of fiscal 2024, down by $453.9-million, a decrease of 2.7 per cent compared with the corresponding quarter of fiscal 2023, mainly attributable to a lower average road transportation fuel selling price, lower aviation fuel volume sold as a result of a change in business model as well as lower road transportation fuel demand, while being partly offset by the contribution from acquisitions and the net positive impact of approximately $102.0-million from the translation of the company's foreign currency operations into U.S. dollars.

For the first half of fiscal 2024, the company's revenues decreased by $3.5-billion or 9.8 per cent, compared with the corresponding period of fiscal 2023, mainly attributable to a lower average road transportation fuel selling price, lower aviation fuel volume sold as well as the net negative impact of approximately $17.0-million from the translation of the company's foreign currency operations into U.S. dollars, while being partly offset by the contribution from acquisitions and organic growth of the company's convenience activities.

Merchandise and service revenues

Total merchandise and service revenues for the second quarter of fiscal 2024 were $4.1-billion, an increase of $42.0-million compared with the corresponding quarter of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net positive impact of approximately $5.0-million. The remaining increase of approximately $37.0-million or 0.9 per cent is primarily attributable to the contribution from acquisitions. Same-store merchandise revenues decreased by 0.1 per cent in the United States and by 0.2 per cent in Europe and other regions (1), driven by lower consumer disposable income, as well as the continued softness of the company's cigarette revenues from illicit competition and the impact of cross-border traffic in Hong Kong. Same-store merchandise revenues increased by 1.6 per cent in Canada, driven by the company's diversified offer in the beverage category, as well as the continued growth of its Fresh Food, Fast program and private brands.

For the first half of fiscal 2024, the growth in merchandise and service revenues was $245.3-million, compared with the corresponding period of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net negative impact of approximately $20.0-million. Same-store merchandise revenues increased by 1.0 per cent in the United States, by 1.3 per cent in Europe and other regions (1), and by 4.0 per cent in Canada.

Road transportation fuel revenues

Total road transportation fuel revenues for the second quarter of fiscal 2024 were $12.2-billion, a decrease of $370.7-million compared with the corresponding quarter of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net positive impact of approximately $79.0-million. The remaining decrease of approximately $450.0-million or 3.6 per cent is attributable to a lower average road transportation fuel selling price, which had a negative impact of approximately $460.0-million. Same-store road transportation fuel volumes decreased by 1.5 per cent in the United States and by 0.9 per cent in Europe and other regions, and increased by 3.0 per cent in Canada. During the quarter, road transportation fuel demand remained unfavourably impacted by challenging macroeconomic conditions, including high inflation.

For the first half of fiscal 2024, the road transportation fuel revenues decreased by $3.5-billion compared with the corresponding period of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net negative impact of approximately $19.0-million. Same-store road transportation fuel volumes decreased by 0.4 per cent in the United States and by 1.2 per cent in Europe and other regions, and increased by 5.0 per cent in Canada.

An attached table shows the average selling price of road transportation fuel of company-operated stores in the company's various markets for the last eight quarters. The average selling price of road transportation fuel consists of the road transportation fuel revenues divided by the volume of road transportation fuel sold.

(1) Please refer to the non-IFRS measures section for additional information on performance measures not defined by IFRS.

Other revenues

Total other revenues for the second quarter of fiscal 2024 were $155.9-million, a decrease of $125.2-million compared with the corresponding quarter of fiscal 2023. The translation of the company's' foreign currency operations into U.S. dollars had a net positive impact of approximately $19.0-million. The remaining decrease of approximately $144.0-million or 51.2 per cent is primarily driven by lower aviation fuel volume sold as a result of a change in business model, which had a minimal impact on gross profit (1).

For the first half of fiscal 2024, total other revenues were $268.1-million, a decrease of $279.1-million compared with the corresponding period of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net positive impact of approximately $20.0-million. The remaining decrease of approximately $299.0-million or 54.6 per cent is attributable to lower aviation fuel volume sold as well as lower prices on the company's other fuel products, which had a minimal impact on gross profit (1).

Gross profit (1)

The company's gross profit was $2.9-billion for the second quarter of fiscal 2024, up by $76.3-million or 2.7 per cent compared with the corresponding quarter of fiscal 2023, mainly attributable to the contribution of acquisitions, the increase in merchandise and service gross margin (1), the increase in road transportation fuel gross margin (1) as well as the net positive impact of the translation of the company's foreign currency operations into U.S. dollars of approximately $6.0-million.

For the first half of fiscal 2024, the company's gross profit increased by $131.9-million or 2.3 per cent compared with the first half of fiscal 2023, mainly attributable to the contribution of acquisitions and organic growth in the company's convenience activities, while being partly offset by lower road transportation fuel gross margins (1) in Europe and other regions, and the net negative impact of the translation of the company's foreign currency operations into U.S. dollars of approximately $10.0-million.

Merchandise and service gross profit

In the second quarter of fiscal 2024, the company's merchandise and service gross profit was $1.4-billion, an increase of $39.1-million compared with the corresponding quarter of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net positive impact of approximately $2.0-million. The remaining increase of approximately $37.0-million or 2.6 per cent is primarily due to organic growth and the contribution of acquisitions, which amounted to approximately $26.0-million. The company's merchandise and service gross margin (1) increased by 0.8 per cent in the United States to 34.8 per cent, impacted favourably by a change in product mix and the improvement of the company's Fresh Food, Fast program gross margin (1). Merchandise and service gross margin (1) increased by 0.3 per cent in Europe and other regions to 38.6 per cent, and remained stable in Canada at 33.2 per cent.

During the first half of fiscal 2024, the company's merchandise and service gross profit was $2.9-billion, an increase of $134.1-million compared with the first half of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net negative impact of approximately $8.0-million. The company's merchandise and service gross margin (1) in the United States increased by 0.5 per cent to 34.5 per cent and by 0.7 per cent in Europe and other regions to 39.3 per cent, and by 0.3 per cent in Canada to 33.5 per cent.

Road transportation fuel gross profit

In the second quarter of fiscal 2024, the company's road transportation fuel gross profit was $1.5-billion, an increase of $29.9-million compared with the corresponding quarter of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net positive impact of approximately $4.0-million. The remaining increase in the company's gross profit was approximately $26.0-million or 1.8 per cent. In the United States, the company's road transportation fuel gross margin (1) was 49.56 cents per gallon, an increase of 0.40 cent per gallon, in Europe and other regions, it was 10.20 U.S. cents per litre, an increase of 0.44 U.S. cent per litre, and in Canada, it was 13.63 Canadian cents per litre, an increase of $1.08 (Canadian) per litre. Fuel gross margins (1) remained healthy throughout the company's network, due to favourable market conditions and the continued work on the optimization of the company's supply chain.

(1) Please refer to the non-IFRS measures section for additional information on performance measures not defined by IFRS.

During the first half of fiscal 2024, the company's road transportation fuel gross profit was $2.9-billion, a decrease of $5.3-million compared with the first half of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net negative impact of approximately $2.0-million. The road transportation fuel gross margin (1) was 49.81 cents per gallon in the United States, 9.22 U.S. cents per litre in Europe and other regions, and 13.44 Canadian cents per litre in Canada.

The road transportation fuel gross margin (1) of company-operated stores in the United States and the impact of expenses related to electronic payment modes for the last eight quarters are detailed in an attached table.

The road transportation fuel gross margin (1) of the company's network in Europe and other regions and in Canada for the last eight quarters is detailed in an attached table.

Generally, road transportation fuel margins can be volatile from one quarter to another but tend to be more stable over longer periods. In Europe and other regions, fuel margin volatility is impacted by a longer supply chain due to a more integrated model. In Europe and other regions and in Canada, expenses related to electronic payment modes are not as volatile as in the United States.

Other revenues gross profit

In the second quarter and first half of fiscal 2024, other revenues gross profit were $39.2-million and $70.4-million, an increase of $7.3-million and $3.1-million, respectively, compared with the corresponding periods of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had no significant impact on gross profit for the second quarter and first half of fiscal 2024.

Operating, selling, general and administrative expenses (expenses)

For the second quarter and first half of fiscal 2024, expenses increased by 2.5 per cent and 2.7 per cent, respectively, compared with the corresponding periods of fiscal 2023. Normalized growth of expenses (1) was 1.5 per cent and 2.6 per cent, respectively, as shown in an attached table.

(1) Please refer to the non-IFRS measures section for additional information on performance measures not defined by IFRS.

Normalized growth of expenses (1) was mainly driven by the impact of costs from rising minimum wages, inflationary pressures and incremental investments to support the company's strategic initiatives, while being partly offset by the continued strategic efforts to control the company's expenses, including labour efficiency in the company's stores. The company's control of expenses is evidenced by its normalized growth of expenses (1) remaining lower than the average inflation observed throughout the company's network.

Earnings before interest, taxes, depreciation, amortization and impairment (EBITDA (1)) and adjusted EBITDA (1)

During the second quarter of fiscal 2024, EBITDA stood at $1.5-billion, an increase of $28.0-million or 1.9 per cent compared with the corresponding quarter of fiscal 2023. Adjusted EBITDA for the second quarter of fiscal 2024 increased by $26.9-million or 1.8 per cent compared with the corresponding quarter of fiscal 2023, mainly due to the contribution from acquisitions, organic growth in the company's convenience operations as well as the translation of the company's foreign currency operations into U.S. dollars, which had a net positive impact of approximately $2.0-million, partly offset by the impact of lower road transportation fuel volume sold.

During the first half of fiscal 2024, EBITDA stood at $3.0-billion, an increase of $36.4-million or 1.2 per cent compared with the first half of fiscal 2023. Adjusted EBITDA for the first half of fiscal 2024 increased by $37.6-million or 1.3 per cent compared with the first half of fiscal 2023, mainly attributable to organic growth in the company's convenience operations as well as the contribution from acquisitions, partly offset by lower road transportation fuel gross margins (1) in Europe and other regions, as well as the translation of the company's foreign currency operations into U.S. dollars, which had a net negative impact of approximately $4.0-million.

Depreciation, amortization and impairment (depreciation)

For the second quarter of fiscal 2024, the company's depreciation expense increased by $15.7-million compared with the second quarter of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had no significant impact on depreciation. This increase is mainly driven by the replacement of equipment, the continuing improvement of the company's network as well as the impact from investments made through acquisitions, partly offset by the impact of the impairment on the company's investment in Fire & Flower Holdings of $23.9-million in the comparable quarter.

For the first half of fiscal 2024, the company's depreciation expense increased by $57.0-million compared with the first half of fiscal 2023. The translation of the company's foreign currency operations into U.S. dollars had a net favourable impact of approximately $3.0-million. The remaining increase of approximately $60.0-million or 8.9 per cent is mainly attributable to similar factors as those of the second quarter.

Net financial expenses

Net financial expenses for the second quarter and first half of fiscal 2024 were $47.0-million and $117.7-million, respectively, a decrease of $11.1-million and $7.5-million, respectively, compared with the corresponding periods of fiscal 2023. A portion of the variation is explained by certain items that are not considered indicative of future trends, as shown in an attached table.

(1) Please refer to the non-IFRS measures section for additional information on performance measures not defined by IFRS.

The remaining variation of the second quarter and first half of fiscal 2024 is mainly driven by higher interest on short-term and long-term debt and lease liabilities, partly offset by higher interest revenue.

Income taxes

The income tax rate for the second quarter and first half of fiscal 2024 was 22.8 per cent, compared with 21.9 per cent for the corresponding periods of fiscal 2023. The increase mainly stems from the impact of a different mix in the company's earnings across the various jurisdictions in which Alimentation Couche-Tard operates.

Net earnings and adjusted net earnings (1)

Net earnings for the second quarter of fiscal 2024 were $819.2-million, compared with $810.4-million for the second quarter of fiscal 2023, an increase of $8.8-million or 1.1 per cent. Diluted net earnings per share stood at 85 cents, compared with 79 cents for the corresponding quarter of the previous fiscal year. The translation of the company's foreign currency operations into U.S. dollars had a net positive impact of approximately $2.0-million on net earnings of the second quarter of fiscal 2024.

Adjusted net earnings for the second quarter of fiscal 2024 were approximately $792.0-million, compared with $838.0-million for the second quarter of fiscal 2023, a decrease of $46.0-million or 5.5 per cent. Adjusted diluted net earnings per share were 82 cents for the second quarter of fiscal 2024, unchanged compared with the corresponding quarter of fiscal 2023.

For the first half of fiscal 2024, net earnings stood at $1.7-billion, a decrease of $29.5-million or 1.8 per cent compared with the first half of fiscal 2023. Diluted net earnings per share stood at $1.70, compared with $1.64 for the previous fiscal year. The translation of the company's foreign currency operations into U.S. dollars had a net negative impact of approximately $1.0-million on net earnings of the first half of fiscal 2024.

Adjusted net earnings for the first half of fiscal 2024 stood at $1.6-billion, a decrease of $83.0-million or 4.8 per cent compared with the first half of fiscal 2023. Adjusted diluted net earnings per share (1) were $1.67 for the first half of fiscal 2024, unchanged compared with the first half of fiscal 2023.

Dividends

During its Nov. 28, 2023, meeting, the board of directors approved an increase in the quarterly dividend of 3.5 Canadian cents per share, bringing it to 17.5 Canadian cents per share, an increase of 25.0 per cent.

During the same meeting, the board of directors declared a quarterly dividend of 17.5 Canadian cents per share for the second quarter of fiscal 2024 to shareholders on record as at Dec. 7, 2023, and approved its payment effective Dec. 21, 2023. This is an eligible dividend within the meaning of the Income Tax Act (Canada).

Non-IFRS measures

To provide more information for evaluating the corporation's performance, the financial information included in the company's financial documents contains certain data that are not performance measures under IFRS (non-IFRS measures), which are also calculated on an adjusted basis to exclude specific items. The company believes that providing those non-IFRS measures is useful to management, investors and analysts, as they provide additional information to measure the performance and financial position of the corporation.

The following non-IFRS financial measures are used in the company's financial disclosures:

• Gross profit;
• Earnings before interest, taxes, depreciation, amortization and impairment (EBITDA), and adjusted EBITDA;
• Adjusted net earnings;
• Interest-bearing debt.

The following non-IFRS ratios are used in the company's financial disclosures:

• Merchandise and service gross margin and road transportation fuel gross margin;
• Normalized growth of operating, selling, general and administrative expenses;
• Growth of same-store merchandise revenues for Europe and other regions;
• Adjusted diluted net earnings per share;
• Leverage ratio;
• Return on equity and return on capital employed.

The following capital management measure is used in the company's financial disclosures:

• Net interest-bearing debt/total capitalization.

Supplementary financial measures are also used in the company's financial disclosures and those measures are described where they are presented.

Non-IFRS financial measures and ratios, as well as the capital management measure, are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS. These non-IFRS measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. In addition, the company's definitions of non-IFRS measures may differ from those of other public corporations. Any such modification or reformulation may be significant. These measures are also adjusted for the pro forma impact of the company's acquisitions and impacts of new accounting standards, if they are considered to be material.

Gross profit

Gross profit consists of revenues less the cost of sales, excluding depreciation, amortization and impairment. This measure is considered useful for evaluating the underlying performance of the company's operations.

About Alimentation Couche-Tard Inc.

Alimentation Couche-Tard is a global leader in convenience and mobility, operating in 25 countries and territories, with more than 14,400 stores, of which approximately 10,800 offer road transportation fuel. With its Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States, and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia and the Baltics, as well as in Ireland. It also has an important presence in Poland and Hong Kong Special Administrative Region of the People's Republic of China. Approximately 128,000 people are employed throughout its network.

For more information on Alimentation Couche-Tard, or to consult its audited annual consolidated financial statements, unaudited interim condensed consolidated financial statements, and management's discussion and analysis, please visit the company's website.

Webcast on Nov. 29, 2023, at 8 a.m. EST

Alimentation Couche-Tard invites analysts known to the corporation to ask their questions to its management on Nov. 29, 2023, during the question-and-answer period of the webcast.

Financial analysts, investors, media and any individuals interested in listening to the webcast on Alimentation Couche-Tard's results, which will take place on-line on Nov. 29, 2023, at 8 a.m. EST, can do so by either accessing the corporation's website and by clicking in the investors/events and presentations section or by using a link to join the conference call without the assistance of an operator. An automated system will automatically return the call to grant you access to the conference call.

Another option could be to access the conference call through an operator by dialling 1-888-390-0549 or the international number 1-416-764-8682, followed by the access code 39933045 and the pound key.

Rebroadcast

For individuals who will not be able to listen to the live webcast, a recording of the webcast will be available on the corporation's website for a period of 90 days.

We seek Safe Harbor.