05:39 PM EST, 11/25/2024 (MT Newswires) -- Alimentation Couche-Tard Inc. ( ANCTF ) , a global convenience and gas-stop operator, after trade Monday said its fiscal second-quarter adjusted earning fell 11% on on reduced same store merchandise revenues even as it boosted its dividend by 11%, while declining to offer any update on its attempt to acquire the 7-Eleven convenience store chain.

Adjusted net earnings attributable to shareholders were approximately $705.0 million compared with $792.0 million for the second quarter of fiscal 2024. Adjusted diluted net earnings per share were $0.74, a decrease of 9.8% from $0.82 for the corresponding quarter of last year. The result missed the consensus estimate for a profit of $0.87 according to FactSet.

Couche-Tard reported total merchandise and service revenues of $4.4 billion, an increase of 6.6%. However, same store merchandise revenues fell by 1.6% in the United States, by 1.5% in Europe and other regions and by 2.3% in Canada. It said all regions were impacted by constraints on discretionary spending due to challenging economic conditions for low income consumers, as well as the continuous decline in the cigarette industry.

Merchandise and service gross margin decreased by 1.0% in the United States to 33.8%, impacted by the investment in promotional offers for its customers, by 0.4% in Europe and other regions to 38.2%, and increased by 0.4% in Canada to 33.6%.

The company offered no fresh detail on its US$47-billion attempt to acquire for Japan's Seven & i Holdings, which owns the 7-Eleven chain. In the latest overseas news on Couche-Tard's chances, the Nikkei newspaper recently reported the founding family of the target entity approached KKR & Co and other investment firms about participating in a potential buyout of the retailer. In addition to KKR, the founding Ito family also approached Bain Capital and Apollo Global Management due to the view it will be difficult to secure sufficient capital from banks, the Nikkei reported.

A day earlier the Nikkei business daily quoted the Canadian suitor's chairman and co-founder, Alain Bouchard, as saying Couche-Tard is not considering a hostile takeover bid for Seven & i. In an interview with Japanese media conducted in Canada on Thursday, Bouchard said a hostile bid "was not among factors being considered," indicating the company's intention to secure an amicable acquisition deal, the Nikkei reported.

The company said its board approved an increase in the quarterly dividend of 2 Canadian cents per share, bringing it to 19.5 Canadian cents per share, an increase of 11.4%

Couche-Tard shares closed Monday down $0.77 or 1% at $77.82 on the Toronto Stock Exchange.