Quebec giant Couche-Tard thinks that smokers are turning more to contraband cigarettes, which has the effect of lowering their sales in this category.
“In Canada, we saw a little more pressure in the cigarette category. There seems to be a change because of the black market”, launched during the investor conference, Wednesday, Claude Tessier, chief financial officer of Couche-Tard.
Later during the call, analysts returned to the charge asking questions about 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,” analyzed Couche-Tard CEO Brian Hannasch.
According to Couche-Tard's No. 1, there could also have been, here and in the United States, more tobacco consumption during the pandemic.
“Since it reopened, people may be smoking a little less,” observed Brian Hannasch.
Meanwhile, the convenience store giant reported net income of US$477.7 million for the fourth quarter of 2022, down from 563, US$9 million in 2021, down 15.3%.
More broadly, Couche-Tard reported net income of US$2.68 billion for its fiscal year 2022 , down slightly by 0.8% compared to the cumulative US$2.71 billion in fiscal year 2021.
Katrine Johns has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Gal Post, Katrine Johns worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my email@example.com 1-800-268-7128