Q3 2025 Alimentation Couche-Tard Inc Earnings Call

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Speaker Change: Good morning, My name is sure whether that will be your conference operator today.

Speaker Change: Good morning, my name is Joelle and I will be a conference operator today. Bonjour, je m'appelle Joelle et je serai votre opérateuriste pour la conférence aujourd'hui. I will now introduce Mr. Mathieu Brunet, Vice President in Vastu Relations and Treasury, at Alim à Traition Couche-Tard. Je vais maintenant passer la parole à Mr. Mathieu Brunet, Vice President in Vastu Relations and Treasury, for Alim à Traition Couche-Tard.

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Speaker Change: English will follow.

Speaker Change: Hello, I would first like to welcome you to the teleconference regarding the release of the financial results for the third quarter of the 2025 fiscal year of Push Start Foods.

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Speaker Change: All lines will be placed in silent mode to avoid any unnecessary noise. Following the presentation, we will answer analysts' questions live. We would like to remind you that this webcast will be available on our website for a period of 90 days.

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Speaker Change: Furthermore, please note that some of the topics discussed during this webcast may consist of forward-looking statements provided by the company with the usual disclaimers. These disclaimers or risks as well as these uncertainties are written in our financial reports. It is therefore possible that our future results may differ from the information presented today. The financial results will be presented by Mr. Alex Miller, President and CEO , and Mr. Philippe De Silva, Chief Financial Officer.

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Alex Miller: Ladies and it's actually not see some of it because I'll keep I Miss you, Alex Miller, President and CEO of the Blackstone atmosphere, Filipino silver shifts that had like smoking nausea.

Speaker Change: Good morning. I would like to welcome everyone to this web conference, presenting Eddie Matassimo-Kuschtahl's financial results for the third quarter of fiscal year 2025.

Speaker Change: Good morning, I would like to welcome everyone to this web conference presenting any amount that sort of pushed out financial results for the third quarter of fiscal year 2025.

Alex Miller: All lines will be kept on mute to prevent any background notes. After the presentation, we will answer questions from analysts asked live during the web conference. We would like to remind everyone that this webcast presentations will be available on our website for a 90 day period. Thank you very much.

Alex Miller: Your lines will be kept on mute to prevent any background noise.

Alex Miller: The presentation, we will answer questions from analysts ask five during the web conference, we would like to remind everyone that this webcast presentations will be available on our website for a 90 day period.

Alex Miller: Also, please remember that some of the issues discussed during this broadcast might be forward-looking statements, which are provided by the Corporation with its usual caveats.

Alex Miller: Also please remember that some of the issues discussed during this web cast may be forward looking statements, which are provided by the corporation with its usual caveats.

Alex Miller: These caveats are risks and uncertain themes are outlined in our financial reporting. Therefore, our future results could differ from the information discussed today. Our financial results will be presented by Mr. Alex Miller, President and Chief Executive Officer, and Mr. Filipe Silva Chief Financial Officer. Alex, you may begin your conference.

These caveats of risks and uncertainties are outlined in our financial reporting therefore, our future results could differ from the information discussed today.

Speaker Change: Our financial results will be presented by Mr. Alex Miller, President and Chief Executive Officer, and Mr. Philippe de Silva Chief Financial Officer, Alex You May begin your conference.

Speaker Change: Thank you Matthew good morning, everyone and thank you for joining us for our presentation of our third quarter results.

Speaker Change: Thank you, Matthew. Good morning, everyone. And thank you for joining us for our presentation of our third quarter results. We are pleased to report positive improvements in the business this quarter. While consumers continue to be cautious in their spending, we are seeing encouraging signs of resilience.

Speaker Change: We are pleased to report positive improvements in the business this quarter, while consumers continue to be cautious in their spending we are seeing encouraging signs Brazilians.

Speaker Change: Same-store sales were positive in both Canada and Europe , compared to the same quarter last year, and we had sequential improvement in the United States. Impacted by historic winter storms in our Southern Business Unit.

Speaker Change: Same store sales were positive in both Canada, and Europe compared to the same quarter last year, and we had sequential improvement in the United States impacted by historic winter storms in our southern business unit.

Speaker Change: Food continued to grow in the US, as our meal-deal promotions performed well and have been extended to Canada.

Speaker Change: Third continued to grow in the U S. As our meal deal promotions performed well and had been extended to Canada and.

Speaker Change: In our fuel business, we are maintaining market share in the United States, and margins aligned with trends seen in recent quarters.

Speaker Change: In our fuel business, we are maintaining market share in the United States and margins aligned with trends seen in recent quarters.

Speaker Change: As inflationary pressure persists, our number one priority is winning our customers by being ready with the products and services they want at compelling value.

Speaker Change: As inflationary pressure persist our number one priority is winning our customers by being ready with the products and services they want at compelling value.

Speaker Change: Later in this presentation, I will go into more detail on these initiatives as well as on our convenience and mobility results.

Speaker Change: Later in this presentation I will go into more detail on these initiatives as well as on our convenience and mobility results.

Speaker Change: However, before I do so, I will touch on two notable areas of the quarter. Our global efforts to grow the network, both through M&A and organically, as well as the impact of the devastating wildfires in Los Angeles and unparalleled winter storms in the southern parts of the U.S.

Speaker Change: However, before I do so I will touch on two notable areas of the quarter, our global efforts to grow the network, both through M&A and organically as well as the impact of the devastating wildfires in Los Angeles and unparalleled winter storms in the southern parts of the U S.

Speaker Change: Yeah.

Speaker Change: I want to begin by briefly mentioning our ongoing commitment to acquire 700 and I holdings.

Speaker Change: I want to begin by briefly mentioning our ongoing commitment to acquire seven and eye holding.

Speaker Change: No doubt you've seen our most recent press releases, giving clarity to our proposal.

Speaker Change: No doubt you've seen our most recent press releases.

Speaker Change: Clarity to our proposal.

Speaker Change: For combination with seven and I as well as accounts of our visit to Japan last week.

Speaker Change: for combination with seven and I as well as accounts of our visit to Japan last week.

Speaker Change: For many years, we are firmly believed that there is a unique strategic fit between Cusco and seven are now.

Speaker Change: For many years, we affirmly believe that there is a unique strategic fit between Couche-Tard and seven and a half, and that we can achieve significantly more together than each of our companies can achieve individually.

Speaker Change: And that we can achieve significantly more together than each of our companies can achieve individually.

Speaker Change: including accelerating the global growth of the iconic 7-11 brand and strengthening the 7-9 business in many parts of the world.

Speaker Change: Including accelerating the global growth of the iconic 711 brand and strengthening the seven and I business in many parts of the world.

Speaker Change: We also firmly believe that a combination provides an opportunity for shareholders and stakeholders of both companies to realize significant value.

Speaker Change: We also firmly believe that a combination provides an opportunity for shareholders and stakeholders of both companies to realize significant value.

Speaker Change: We have reiterated several times over the past few months that we intend to be friendly and persistent in pursuing a transaction which we believe is in the best interest of all stakeholders.

Speaker Change: We have reiterated several times over the past few months that we intend to be friendly and persistent in pursuing a transaction, which we believe is in the best interest of all stakeholders.

Speaker Change: We have done that in the face of significant frustration and distraction.

Speaker Change: We have done that in the face of significant frustration and distraction.

Speaker Change: We look forward to full some engagement with Seven and I so that we can reach definitive terms and move forward with the transaction that is in the best interest of all stakeholders.

Speaker Change: We look forward to fulsome engagement with seven NII. So that we can reach definitive terms and move forward with the transaction that is in the best interest of all stakeholders.

Speaker Change: It is worth noting that while there has been extensive media coverage, internally, a very small team has involved in our effort concerning seven and I, as the vast majority of the business is laser focused on our global operations.

Speaker Change: It is worth noting that while there has been extensive media coverage internally a very small team is involved in RF and efforts concerning seven and I as the vast majority of the business is laser focused on our global operations.

Speaker Change: Moving to Europe.

Speaker Change: Moving to Europe

Speaker Change: This quarter, we reached our one-year anniversary of acquiring certain assets from total energies and almost doubling our size in Europe by expanding to four new countries.

Speaker Change: This quarter, we reached our one year anniversary of acquiring certain assets from total energies and almost doubling our size in Europe by <unk> expanding to four new countries.

Speaker Change: With the one-year mark, I'm happy to report that we are now reporting synergies from the transactions which are on track with our expectations. Felipe will cover more details in his presentation.

Speaker Change: With the one year Mark I'm happy to report that we are now reporting synergies from the transaction, which are on track with our expectations Philippe.

Speaker Change: Philippe will cover in more details in his presentation.

Speaker Change: We are truly proud of how the new team members have embraced our culture, values, and customer focused approach to retail operations.

Speaker Change: We are truly proud of how the new team members have embraced our culture values and customer focused approach to retail operations.

Speaker Change: We continue to see strong progress with store rebranding, both on the physical store layout as well as with product disortment and EV charging dispensers.

Speaker Change: We continue to see strong progress with store rebranding both on the physical store layout as well as with product assortment and EV charging dispensers.

Speaker Change: While discussing M&A, let me briefly mentioned the good progress we are making with get go which we expect to close in the first half of calendar 2025.

Speaker Change: While discussing M&A, let me briefly mention the good progress we are making with Getgo, which we expect to close in the first half of calendar 2025.

Speaker Change: As we have always done.

Speaker Change: As we have always done with all of our acquisitions, we have identified local management to lead the business as they know best how to serve local customers.

Speaker Change: With all of our acquisitions, we have identified local management to lead the business as they know best how to serve local customers.

Speaker Change: We also continue to be excited about our learning from get-go's extremely popular food and loyalty programs and dedicated team members.

Speaker Change: We also continue to be excited about our learning from get goes extremely popular food and loyalty programs and dedicated team members.

Speaker Change: Inorganic growth, we continue to make progress on our 500 new store effort.

Speaker Change: In organic growth, we continue to make progress on our 500 new store effort. We've opened 39 stores in Q3, 69 year to date, and we are on track to open over 100 in North America this fiscal year.

Speaker Change: We've opened 39 stores in Q3 69 year to date and we are on track to open over 100 in North America This fiscal year.

Speaker Change: A recent news stores include dozens of high-speed diesel and rural locations.

Speaker Change: Our recent new stores include dozens of high speed diesel and rural locations.

Speaker Change: As of today, we have more than 56 stores currently under construction and about 1000 sites in our overall real estate development pipeline.

Speaker Change: As of today, we have more than 56 stores currently under construction and about 1000 sites in our overall real estate development pipeline.

Speaker Change: The second point I want to acknowledge the heroic work of our teams in our West Coast business unit to support and serve their communities during the catastrophic wildfires in Los Angeles in January.

Speaker Change: The second point I want to acknowledge is the heroic work of our teams in our West Coast business unit to support and serve their communities during the catastrophic wildfires in Los Angeles in January . Thank you very much.

Speaker Change: While we had a few stores impacted, team members showed incredible courage and dedication by getting out to our locations to provide essential supplies to customers, free beverages, and replenishment to first responders.

Speaker Change: Well, we had a few stores impacted team members showed incredible courage and dedication by getting out to our locations to provide essential supplies to customers.

Speaker Change: Pre beverages and replenishment to first responders.

Speaker Change: We also had a successful fuel day fundraiser from which with the support of our Global Franchise team, we donated $100,000 US dollars to the American Red Cross for their continued relief work in the region.

Speaker Change: We also had a successful fuel day from fundraiser from which with the support of our global franchise team. We donated 100000 U S dollars to the American Red Cross for their continued relief work in the region.

Speaker Change: Also in January in the U S. Our southern business units endured a historic winter storm.

Speaker Change: Also in January in the US, our Southern Business units endured a historic winter storm that in a region completely unaccustomed to a accumulation of snow and ice caused widespread power outage and left millions grappling with hazardous road conditions and freezing temperatures. As always, our teams kept stores opened and offered the services and products needed by our customers.

Speaker Change: That in a region completely unaccustomed to accumulation of snow and ice caused widespread power outage and left millions grappling with hazardous road conditions and freezing temperatures.

Speaker Change: Always our teams kept stores opened and offered the services and products needed by our customers.

Now, let me get back to our quarterly results starting with convenience.

Speaker Change: Now, let me get back to our quarterly results, starting with convenience.

Speaker Change: Compared to the same quarter last year, same-store merchandise revenues decreased by 0.1% in the United States, increased by 0.2% in Europe and other regions.

Speaker Change: Compared to the same quarter last year same store merchandise revenues decreased by 0.1% in the United States.

Speaker Change: Increased by 0.2% in Europe and other regions.

Speaker Change: And by two 8% in Canada.

Speaker Change: and by 2.8% in Canada.

Speaker Change: While we had sequential improvement in the U.S., our same store sales performance was negatively impacted by those winter storm.

Speaker Change: While we had sequential improvement in the U S. Our same store sales performance was negatively negatively impacted by those winter storms.

Speaker Change: and Filipe will provide more details on this.

Speaker Change: And Philippe will provide more details on this.

Speaker Change: Again, this quarter, as challenging inflationary conditions persisted, we have been relentlessly focused on winning our customers by providing compelling value on products and service.

Speaker Change: Again, this quarter as challenging inflationary conditions persisted, we have been relentlessly focused on winning our customers by providing compelling value on products and services.

Speaker Change: Following our successful launch of meal deals in the US in January , we expanded the line offer across Canada by bundling popular food items, a value-packed price to create a satisfying and affordable meal option.

Speaker Change: Following our successful launch of meal deals in the U S. In January we expanded the line offer across Canada by bundling popular food items at value pack price to create a satisfying and affordable meal option.

Speaker Change: Across North America, we are now at nearly 465,000 meal deals being sold on a weekly basis, and that number is growing materially every week.

Speaker Change: Across North America, we are now at nearly 465000 meal deals being sold on a weekly basis and that number is growing materially every week.

Speaker Change: Our win in food strategy continues to progress with over 5890 fresh food fast stores opened globally.

Speaker Change: Our winning food strategy continues to progress with over 5,890 fresh food fast-doors open globally.

Speaker Change: We recently appointed a new senior vice president for global food and marketing, Metta Ugliburg, who is bringing her decades of experience in our popular European food program to our global operation.

Speaker Change: We recently appointed a new senior Vice President for global food and marketing.

Speaker Change: Ooh, Bloomberg, who is bringing her decades of experience in our popular European food program to our global operation.

Speaker Change: Under herd leadership and listening closely to customer feedback and data, we are focusing now more than ever on value, consistency, and having the right products available at the right time.

Speaker Change: Under her leadership and listening closely to customer feedback and data, we are focusing now more than ever on value consistency and having the right products available at the right time.

Speaker Change: Turning to our loyalty membership programs in.

Speaker Change: Turning to our Loyalty Membership Program [inaudible]

Speaker Change: in the U.S. Inner Circle registrations and full enrolments are up 13% from the previous quarter and we are closing in on 10 million members.

Speaker Change: In the U S inner circle registrations in full enrollments are up 13% from the previous quarter and we are closing in on 10 million members.

Speaker Change: We continue doubling down on our personalization efforts, and the team is working on implementing new capabilities to tailor our offers and content to different segments of course.

Speaker Change: We continue doubling down on our personalization efforts and the team is working on implementing new capabilities to tailor our offers and content to different segments of customers.

Speaker Change: Easy Pay and Inner Circle were successfully linked this quarter, allowing customers a more frictionless, single-card experience at both our pumps and in our store.

Speaker Change: Easy pay an inner circle were successfully linked this quarter, allowing customers a more frictionless single card experience at both our pumps and in our stores.

Speaker Change: We are pleased with the large number of customers already taking advantage of this benefit unlocking increased personalized value.

Speaker Change: We are pleased with the large number of customers already taking advantage of this benefit, unlocking increased personalized value.

Speaker Change: In Europe, the number of active extra members continues to grow with one out of every two fuel transactions and nearly one out of every three merchandising transactions coming from extra members.

Speaker Change: In Europe , the number of active extra members continues to grow. With one out of every two fuel transactions and nearly one out of every three merchandising transactions, coming from extra members.

Speaker Change: We successfully rolled out our new extra 2.0 loyalty concept in Sweden and are working to expand it to additional European business units later this calendar year.

Speaker Change: We successfully rolled out our new extra 2.0 loyalty concept in Sweden and are working to expand it to additional European business units later this calendar year.

Speaker Change: The new concept is designed to offer rewards across all products and services at our site.

Speaker Change: The new concept is designed to offer rewards across all products and services at our site.

Speaker Change: whether a customer is looking to fill up with fuel, charge an electric vehicle, or grab a snack.

Speaker Change: Whether a customer is looking to fill up with fuel charge, an electric electric vehicle or.

Speaker Change: Grab a snack.

Speaker Change: This is the first time we have brought our entire offering under one loyalty value proposition, and we are seeing a lift in both traffic and increase value per extra member.

Speaker Change: This is the first time, we have brought our entire offering under one loyalty value proposition and we are seeing a lift in both traffic and increased value per extra member.

Speaker Change: In our goal of owning <unk>, we are excited about our many exclusive product launches in the U S, including Celsius watermelon ice during the quarter and our first ghost brand exclusive this month.

Speaker Change: In our goal of owning thirst, we are excited about our many exclusive product launches in the U.S. Including Celsius watermelon ice during the quarter and our first ghost brand exclusive this month.

Speaker Change: Looking towards the summer, you will have our second Gatorade exclusive. Cold and frozen dispense beverages in the U.S. continued impressive double digit unit growth with margins beginning to normalize following the completion of our summer traffic campaign.

Speaker Change: Looking towards the summer, we will have our second Gatorade exclusive cold and frozen dispense beverages in the U S continued impressive double digit unit growth with margins beginning to normalize following the completion of our summer traffic can point campaign.

In the adult beverage category. It is worth calling out central Canada business units excellence performance in the beer space.

Speaker Change: In the adult beverage category, it is worth calling out central Canada's business units excellence performance in the beer space.

Speaker Change: Last quarter, following a change in legislation in Ontario, Canada's largest market. We've been able to offer a selection of beer, cider, wine, and ready to drink alcoholic beverages in our nearly 600 eligible stores.

Speaker Change: Last quarter following a change in legislation in Ontario, Canada's largest market, we've been able to offer a selection of beer cider wine and ready to drink alcoholic beverages, and our nearly 600 eligible stores.

Speaker Change: The response has been overwhelming, with customers thrilled about the added convenience, wider selection, and competitive price.

Speaker Change: The response has been overwhelming with customers thrilled about the added convenience wider selection and competitive pricing.

Speaker Change: Now close to 50 percent of beer sales, both in dollars and unit share, for the entire country comes from our central Canada business unit, which also has the highest percentage of sales coming from beer in our entire global network.

Speaker Change: Now close to 50% of beer sales both in dollars and unit share for the entire country comes from our Central Canada business unit.

Speaker Change: Which also has the highest percentage of sales coming from beer and our entire global network.

Speaker Change: In the U S. The overall nicotine performance was slightly negative as lower demand for cigarettes was partially offset by the growth in other nicotine products.

Speaker Change: In the US, the overall nicotine performance was slightly negative, as lower demand for cigarettes was partially offset by the growth in other nicotine products.

Speaker Change: However, we continue to outperform the market due to our efforts around price optimization, assortment expansion, and the continuation of personalization programs for our age-verified

However, we continue to outperform the market due to our efforts around price optimization assortment expansion and the continuation of personalization programs for our age verified customers.

Speaker Change: In Europe, we had a strong performance in nicotine products with growth of Otp's, especially E cigarettes, and increase tobacco cigarette sales in the Netherlands, which has new legislations favorable to our industry.

Speaker Change: In Europe , we had a strong performance in nicotine products with growth of OTPs, especially e-cigarettes, and increased tobacco cigarette sales in the Netherlands, which has new legislations favorable to our industry.

Speaker Change: Moving to our fuel business.

Speaker Change: Moving to our field is-

Speaker Change: Same-store road transportation fuel volumes decreased by 3% in the United States by 0.9% in Europe and other regions, while it increased by 3.6% in Canada.

Speaker Change: I'm Stuart Road transportation fuel volumes decreased by 3% in the United States by 0.9% in Europe and other regions, while it increased by three 6% in Canada.

Speaker Change: As I mentioned earlier, we are maintaining market share in the United States and margins aligned with the trends of recent quarters as we continue to work on building value from our fuel supply chain and serving our customers through lower cost sourcing options.

Speaker Change: As I mentioned earlier, we are maintaining market share in the United States and margins aligned with the trends of recent quarters as we continue to work on building value from our fuel supply chain and serving our customers through lower cost sourcing options.

Speaker Change: Our Europe <unk> fuel business has demonstrated resilience this quarter delivering solid income despite experienced volume volatility across markets.

Speaker Change: Our Europe B2B fuel business has demonstrated resilience this quarter, delivering solid income despite experience volume volatility across market.

Speaker Change: Growing non-fuel income remains a strategic priority for our European B2B, and B2B transit-charging volumes grew steadily, up 70% year-over-year, contributing approximately 50% of transit-charging in our Nordic country.

Speaker Change: Growing non fuel income remains a strategic priority for our European B to B and B to B transit charging volumes grew steadily up 70% year over year contributing approximately 50% of transit charging in our Nordic countries.

Speaker Change: <unk> share in the U S continues to grow quarter over quarter, as we develop customer relationships with fleets of all sizes and.

Speaker Change: B2B fuel share in the US continues to grow quarter over quarter as we develop customer relationships with fleets of all sizes and implement new strategic partnerships.

Speaker Change: Implement new strategic partnerships.

Speaker Change: Are you, are USB2B customers see great value in our ability to offer consistency across the entirety of our network? To serve their businesses and provide a great experience for their drivers?

Speaker Change: Our U R U S b to B customers see great value in our ability to offer consistency across the entirety of our network to serve their businesses and provide a great experience for their drivers.

Speaker Change: As for our truck segment, we are seeing positive momentum, especially in the Northern United States. We also have nearly 200,000 B2B customers as members of the Inner Circle loyalty program, receiving personal rewards for commercial fueling.

As for our truck segment, we are seeing positive momentum, especially in the northern United States. We also have nearly 200000 <unk> customers as members of the inner circle loyalty program, receiving personal rewards for commercial fueling.

Speaker Change: Okay.

Speaker Change: Are you being fast-charging network in Europe now consists of nearly 3,300 charge points?

Speaker Change: Our EV fast charging network in Europe now consist of nearly 3300 charge point.

Speaker Change: in our new mid-European business units, all EV chargers have been rebranded.

Speaker Change: And our new mid European business units, all EV Chargers have been rebranded.

Speaker Change: Perhaps our most exciting recent development and immobility has been the opening of our biggest charging hub in Sweden.

Speaker Change: Perhaps our most exciting recent development in E mobility has been the opening of our biggest charging hub in Sweden.

Speaker Change: The site features 26 high-powered chargers for both passenger cars and heavy vehicles. It has solar-powered energy, integrated into the station's design, and a new four-quarter concept with drive-through layout for seamless and efficient charging. [inaudible]

Speaker Change: The site features 26 high power Chargers for both passenger cars and heavy vehicles. It has solar powered energy integrated into the stations design and a new four CT concept with drive thru layout for seamless inefficient charging.

Speaker Change: Yeah.

Speaker Change: Before I turn the call over to Filipe, I want to mention our positive development in employee retention and engagement.

Speaker Change: Before I turn the call over to Philippe I want to mention our positive development and employee retention and engagement.

Speaker Change: First, I'm very proud of our continuous improvement in bringing down store turnover and increasing new higher retention across the network.

Speaker Change: First I am very proud of our continuous improvement and bringing down store turnover and increasing new Howard new higher retention across the network we.

Speaker Change: We are now at levels that were once hard to imagine and significantly outperform the industry.

Speaker Change: We are now at levels that were once hard to imagine and significant significantly outperformed the industry.

Speaker Change: We were also just awarded, for the fourth consecutive year, the Gallup Executional Workplace Award. For me, there is nothing more important than protecting and promoting the strong one-team culture we have at Couche-Tard.

Speaker Change: We were also just awarded for the fourth consecutive year, the Gallup exceptional workplace Award.

Speaker Change: For me there is nothing more important than protecting and promoting the strong one team culture, we have at Costar.

Speaker Change: We will continue to build on this momentum of engagement and retention, ensuring our workplace remains one where our team members can grow and thrive while living our values and embracing our mission to make our customers' lives a little easier every day.

Speaker Change: We will continue to build on this momentum of engagement and retention, ensuring our workplace remains one where our team members can grow and thrive while living our values and embracing our mission to make our customers lives a little easier every day.

Speaker Change: With that, let me turn it over to Filipe to dive deeper into our financial performance this quarter.

Speaker Change: With that let me turn it over to Philippe to dive deeper into our financial performance this quarter.

Philippe: Thank you Alex good morning, everyone.

Philippe: Thank you, Alex. Good morning, everyone.

Philippe: We deliver notable progress this quarter, with our most improved performance in over a year as we continue to navigate challenging consumer trends, particularly in the United States.

Philippe: We delivered notable progress this quarter with our most improved performance in over a year as we continue to navigate challenging consumer trends, particularly in the United States.

Philippe: Our results reflect the balanced mix of organic growth and acquisitions demonstrating the strength of our globally diversifying network, the success of our integration activities, and our commitment to drive long-term sustainable growth.

Philippe: Our results reflect a balanced mix of organic growth and acquisitions, demonstrating the strength of our globally diversified network. The success of our integration activities and our commitment to drive long term sustainable growth.

Philippe: This quarter also marks the one year anniversary of the acquisition of certain assets from total energy, which is on track for synergy realization and continuous delivery of solid results thanks to the dedicated efforts of all our team members.

Philippe: This quarter also marks the one year anniversary of the acquisition of southern upset from total jump in MG, which is on track for synergy realization and continues to deliver solid results. Thanks to the dedicated efforts of.

Philippe: All of our team members.

Philippe: It is important to note that for the overlapping period during the quarter, the acquisition of the diverse strong, mid-single, deep-sheet, sandstorm, merchandise, revenue growth, while sandstorm road transportation, fuel volume were also positive.

Philippe: It is important to note that for the overlapping periods during the quarter. This acquisition delivered strong mid single digit centerfold merchandise revenue growth while center toll road transportation.

Philippe: So positive.

Philippe: This further highlights our ability to integrate large acquisition.

Philippe: The server highlights our ability to integrate last acquisition and enable local management to drive results.

Philippe: And then <unk>, our local management to drive results.

Philippe: With regard with regard to synergies significant realization. So far we have delivered approximately 13 million euros on operating expenses as of February six 2025.

Philippe: We've revert, we've revert to synergy, synergy realization, so far we have delivered approximately 13 million euros on operating expenses as of February 2nd, 2025. The synergy's one rate is progressing according to plan and is still expected to reach one hour 20 million euros in fiscal 2027 and one hour 70 million euros in fiscal 2029.

Philippe: The <unk> run rate is progressing according to plan and is still expected to reach the 120 million euros in fiscal 2027, and 170 million euros in fiscal 2029.

Philippe: This synergies should result in reductions in operating, selling, administrative, and general expenses, as well as sales uplift from the introduction of our industry-leading best practices in operations, customer offerings and costs.

Philippe: These synergies should result in reductions in operating selling administrative and general expenses as well as sales uplift from the introduction of our industry, leading best practices in operations customer offerings and concepts.

Speaker Change: As Alex mentioned Oxfam stopped it for months in the U S was impacted by severe and unusual weather events.

Speaker Change: As Alex mentioned, our same stopper from out in the US was impacted by severe and unusual weather events, particularly in our southern business unit.

Speaker Change: Actually in our Falcon <unk> business units.

Speaker Change: excluding these disruptions of same-store sales in the US would have been positive, as we estimate its impact at nearly 30 basis points.

Speaker Change: Excluding these disruptions.

Speaker Change: Same store sales in the U S would have been positive as we estimate its impact at nearly 30 basis points.

Speaker Change: Similarly, same-store road transportation fuel volumes were estimated to have been impacted by approximately 70 base spots.

Speaker Change: Similarly, same store road transportation fuel volumes were estimated to have been impacted by approximately 70 basis points.

Speaker Change: Alex noted earlier that our European business saw positive performance across most categories. We same store sales increasing by one 3% excluding the contribution from the four new countries.

Speaker Change: I'll explain to you earlier that our reunion business so positive performance across most categories. We sensed ourselves increasing by 1.3%, excluding the contribution from the full new country.

Speaker Change: I also want to highlight that exuding the Tobacco category in Hong Kong, the performance of this business you need on the same store sales would have been plus 5.6% driven by commercial activities around Chinese areas.

Speaker Change: I also want to highlight that excluding the tobacco category and Hong Kong. The default model for this business who need on same store sales would have been plus five 6%.

Speaker Change: By coalition actually <unk>, one Chinese urea.

Speaker Change: I will now go over some key figures for the quarter for more details. Please refer to our MD&A available on our website.

Speaker Change: I will now go over some key figures for the plotter. For more details, please refer to our MDNA available on our website.

Speaker Change: For the third quarter of fiscal 2025 reported an adjusted net earnings attributable to shareholders of the corporation were approximately $641 million or 68 per share on a diluted basis, representing an increase of four 6% compared to corresponding quarter.

Speaker Change: For the third quarter of this call, 2025, reported an adjusted net earnings attributable to shareholders of the corporation, where approximately $641 million or 68 cents per share on the diluted basis.

Speaker Change: representing an increase of 4.6% compared to the corresponding quarter of last year.

Speaker Change: Last year.

Speaker Change: Adjusted EBITDA for the third quarter of fiscal 2025 increased by just over $157 million or 11, 3% compared with the corresponding quarter of fiscal 2024, mainly due to the higher road transportation to more spot Shimon the contribution from acquisitions.

Speaker Change: I just did a BDA for the third quarter of fiscal 2035, increased by just over $1067 million or 11.3% compared with the corresponding quarter of fiscal 2024, many due to the higher road transportation fuel risk margin, the contribution from acquisitions, which are guaranteed to approximately $104 million and organic growth in our convenience operations, roughly offset by sub-nets in shoe demand.

Speaker Change: Which amounts to approximately $104 million and organic growth in our convenience operations, partly offset by softness in pure demand.

Speaker Change: Now, let's review in detail on each of our business six months on that.

Speaker Change: Now let's review in detail each of our business segments on an ethics-adjusted base.

Speaker Change: FX adjusted basis during.

Speaker Change: During the third quarter, merchandise and service revenues increased by approximately $295 million or 5.9 percent, primarily, a trivial to the contribution from acquisition, which amounted to approximately $248 million and organic goods.

Speaker Change: During the third quarter merchandise and service revenues increased by approximately $295 million.

Speaker Change: Or five 9% primarily attributable to the contribution from acquisition, which amounted to approximately $248 million and organic growth.

Speaker Change: Merchandise and service.

Speaker Change: merchandise and service, gross profit increased by approximately 134 million dollars of 7.8%.

Speaker Change: Gross profit increased by approximately $134 million of seven 8%.

Speaker Change: This is primarily a tribute to the contribution from acquisitions, which amounted to approximately $89 million and improved the merchandise and service growth margin in the United States.

Speaker Change: This is primarily attributable to the contribution from acquisitions, which amounted to approximately 80.

Speaker Change: $89 million and improve the merchandise and services gross margin in the United States.

Speaker Change: A merchandise and service gross matching in the United States increased by 0.9% to 34% from improved supply conditions, one decreased by 0.2% to 39% in Europe and over regions, and over regions.

Speaker Change: Our merchandise and services gross margin in the United States increased by 9% to 59%.

Speaker Change: 4%, sorry from improved supply conditions, one decreased by 2% to 59% in Europe and other regions Andover regions.

Speaker Change: In Canada, our merchandise and service growth margin decreased by 1.8% to 32.4% reflecting a different product mix as new alcohol rate news have a lower margin rate than the other nicotine products that are no longer sold in our stores.

Speaker Change: In Canada, our merchandise and services gross margin decreased by one 8% to 32, 4%, reflecting a different product mix as new alcohol revenues at a lower margin rate than the overall nicotine products that are no longer in our stores.

Speaker Change: Moving on to the acute side of our business Our road transportation fuel gross margin was $44 28 per gallon in the United States, an increase of 1.09 together in.

Speaker Change: Moving on to the pure side of our business, our road transportation fuel growth margin was 44.28 cents per gallon in the United States, an increase of 1.09 cents per gallon. In Europe and over regions, it was 9.29 US cents per liter, an increase of 0.73 US cents per liter, and in Canada it was 16.13.54 cents per gallon per liter, an increase of 0.55 cents per gallon per liter.

Speaker Change: In Europe and over regions it was <unk>.

Speaker Change: <unk> 9009 U S cents per litre an increase of <unk> 73 U S cents.

Speaker Change: Dieter and Canada. It was 15 13, sorry, $13 64 Canadian per litre an increase of 55 cents Canadian per meter.

Speaker Change: Fuel margins remain healthy throughout the network due to the continued work on the optimization of archipy chain and strong executive execution in our store.

Speaker Change: Fuel margins remained healthy who often at work due to the continued work on the optimization of our supply chain and strong execution in our stores.

Speaker Change: In addition, few marches across Germany have normalized from the lower level with the experience of this year, and we expect this trend to continue.

Speaker Change: In addition to marches across Germany have normalized from the low levels. We experienced earlier this year and we expect this trend to continue.

Speaker Change: Now looking at SG&A for the third quarter of fiscal 2025 normalized expenses increased by two 6% year over year.

Speaker Change: Now looking at SGNA for the third quarter of fiscal 2025, normalized expenses increased by 2.6% year-over-year.

Speaker Change: This is primarily due to inflationary pressure and incremental investment supporting our strategic initiatives, more than upset by a continued effort under the speed to serve program.

Speaker Change: This is primarily due to inflationary pressure and incremental investments supporting our strategic initiatives more than offset by a continued at four until that's fit to serve program.

Speaker Change: From a productivity standpoint, we continue to refine our cost structure and improved labor efficiency, reducing staff by over 2% across our regions. While U S store associate uptime remains below 3% outperforming preorder year prior year levels.

Speaker Change: From a productivity standpoint, we coated to refine our cost structure and improve labor efficiency, reducing stores hour by over 2% across our regions, while U.S. store associates all the time remains below 3% outperforming prior year, prior year level.

Speaker Change: We.

Speaker Change: We are delivering additional savings by consolidating procurements for good, non-for sale and expanding capabilities via our shared service center known as the global capability network.

Speaker Change: We are delivering additional savings by consolidating procurement for goods not for resale and expanding capabilities via our shared service center known as the global capability networks.

Speaker Change: If initially established to streamline accounting and finance operation, GCN is rumping up nicely, supporting multiple business verticals by centralizing customer care, facility management, and back-office edge-shows to me.

Speaker Change: This initially established through streamlined accounting and finance operation GCN is ramping up nicely supporting multiple business 50 calls by centralizing customer care facility management and back office HR services.

Speaker Change: Argo is to achieve over $70 million savings over the next five. [inaudible]

Speaker Change: Our goal is to achieve over $70 million savings. Although the next five years at the same time, we have been seeing technology ecosystem with strategic partners, ensuring we have the right expertise and solution needed to accelerate our transformation and enhance service levels by.

Speaker Change: At the same time, we are advancing our technology ecosystem through strategic partners, ensuring we have the right expertise and solution needed to accelerate our transformation and enhance service levels.

Speaker Change: By leveraging data analytics and scale, fit to subcontinue to drive cost savings that enable reinvestment in key technology.

Speaker Change: By leveraging that kind of ethics and scale to continue to drive cost savings that enable reinvestment in key technologies.

Speaker Change: One such stick to energy is relax and AI driven system optimizing product placement ordering and Ripley replenishment following.

Speaker Change: One such technology is Relax, an AI-driven system, optimizing product placement, ordering and replenishment. Following success in Europe , we are now deploying Relax in North America to enhance inventory management, reduce the cost, and minimize waste.

Speaker Change: Continued success in Europe, we are now deeply and relax in North America Womens inventory management reduce stockout and minimize waste.

Speaker Change: pilots will launch in August this year with a full scale rollout planned for early 2020.

Speaker Change: By notes, we launched in August this year with a full scale rollout planned for early 2026.

Speaker Change: Over the past few years, we have nearly doubled our technology investment, modernizing infrastructure, digitizing the customer experience, and providing store associate with advanced tools.

Speaker Change: Although the past few years, we have nearly doubled our technology. This month modernizing infrastructure digitizing, the customer experience and providing store associate with advanced tools.

Speaker Change: We have identified all the necessary cost reduction to achieve and potentially exceed our 800 million target, allowing us to operate more effectively and at a faster pace, while maintaining the same level of

Speaker Change: We have identified all the necessary cost reduction to achieve and potentially penta truly exceeded 800 million tuckett, allowing us to operate more effectively and at a faster pace, while maintaining the same level.

Speaker Change: All these efforts align closely with about 10 for the REIT strategy reinforcing our ability to execute.

Speaker Change: All these efforts align closely with our 10-for-the-me strategy, reinforcing our ability to execute our own long-term subjects.

Speaker Change: On long term objectives.

Speaker Change: From a tax perspective, the income tax rate for the third quarter of fiscal 2025 was 21% compared with 22% for the corresponding quarter of fiscal 2024.

Speaker Change: From the tax perspective, the income tax rate for the third quarter of fiscal 2025 was 21% compared with 22% for the corresponding quarter of fiscal 2024.

Speaker Change: The decrease in mainly standing from the impact of the different myths in our burnings across the various juridic shun in which we operate.

Speaker Change: The decrease in mainly stemming from the impact of the different mix earnings across various jurisdictions in which we operate.

Speaker Change: As a February 2, 2025, we recorded a return on equity at 18.8% and a return on capital employed to at 12.3%

Speaker Change: As of February two.

Speaker Change: 2025, we recorded a return on equity at 18, 8% and our return on capital employed to 12, 3% during.

Speaker Change: During the fiscal year, a leverage ratio remained at 2.07. We also had strong balanced sheet liquidity with $1.7 billion in cash and an additional $3 billion available through our revolving and secured operating credit.

Speaker Change: During the fiscal year, our leverage ratio remained at two point or seven we also had strong balance sheet liquidity with $1 $7 billion in cash and an additional $3 billion available through our revolving unsecured operating credit settings.

Speaker Change: Turning to the legend, the Board of Directors declared yesterday a quarter of the legend of 19.3, 19.5 cents can add in to share for the third quarter of this call 2025 to shareholders on record as at March 27, 2025 and approved the statement effective April 10, 2025.

Speaker Change: Turning to the dividend the board of directors declared yesterday quantity GDN of 19 point $19.05 Canadian per share for the third quarter of fiscal 2025 to shareholders on record as of March 27, 2025, and therefore its payment effective April 10 2025.

Speaker Change: Let me conclude by briefly highlighting a few key points our results reflect a balanced mix of organic growth and acquisition demonstrating the strength of our globally diversified network and proven operating model, we continue to deliver on synergies and our ability to integrate large acquisition one empowering local management highlights.

Speaker Change: Let me conclude by briefly highlighting a few people [inaudible]

Speaker Change: Our results reflect a balanced mix of organic growth and acquisition, demonstrating the strength of our globally diversified network and proven operating model. We continue to deliver on synergies and our ability to integrate large acquisition while empowering local management, highlights the dedication of our team and the depth of our culture.

Speaker Change: The dedication of our team and the depth of our culture.

Speaker Change: We remain focused on discipling growth, leveraging our strong balance sheet and strategic investments to create a long-term, sustainable, value for our shoulders. I thank you all for your attention. I will turn the call over again to our president and CEO Alex Miller.

Speaker Change: We remain focused on disciplined growth leveraging our strong balance sheet and strategic investments to create long term sustainable value for shareholders.

Alex Veto: Thank you all for your attention I will turn the call over again to our president and CEO Alex veto.

Speaker Change: Thank you Philippe and I will be brief to leave time to answer your questions.

Speaker Change: Thank you, Filipe, and I'll be brief to leave time to answer your questions.

Speaker Change: No doubt, we are living through uncertain times with many geopolitical and economic challenges across our global network.

Speaker Change: No doubt we are living through uncertain times with many geopolitical and economic challenges across our global network.

Speaker Change: However, what is most important to me is that we stay relentlessly focused on winning our customers by providing compelling value and services and doing the right thing for them and our team members.

Speaker Change: What is most important to me is that we stay relentlessly focused on winning our customers by providing compelling value and services and doing the right thing for them and our team members.

Speaker Change: As we have done for the last 45 years I remain confident that.

Speaker Change: As we have done for the last 45 years, I remain confident that by relying on the values we live by our long-term strategy, global scale, and proven ability to successfully grow the network, we will continue to move forward in our vision to become the world's preferred destination for convenience and mobility.

Speaker Change: By relying on the values, we live by our long term strategy global scale and proven ability to successfully grow the network. We will continue to move forward in our vision to become the world's preferred destination for convenience and mobility.

Speaker Change: On that note, let's turn it over to the operator to answer Analyst's question.

Speaker Change: On that note, let's turn it over to the operator to answer analyst questions.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by the one on your Touchtone phone.

Speaker Change: Thank you. Ladies and gentlemen, we will now begin the question and answer session.

Speaker Change: Do you have a question, please press star, followed by the one on your touchtone phone? You will hear prompt that your hand has been raised. So do you wish to be climbed from the polling process, please press star, followed by the

Speaker Change: You'll hear a prompt that Johan has been raised should you wish to decline from the polling process. Please press star followed by the two.

Speaker Change: If you are using a speaker phone, please let the hands have before pressing any...

Speaker Change: If you are using a speaker phone please lift the handset before pressing any keys, we request that our callers limit yourselves to one question one moment. Please for your first question.

Speaker Change: We request that our callers limit yourselves to one question.

Speaker Change: One moment, please fear first question.

Irene: Your first question comes from Irene <unk> with RBC capital markets. Your line is now open.

Irene: Your first question comes from Irene Nattel with RBC Capital Markets. Your line is now open.

Speaker Change: Thanks, and good morning, everyone.

Speaker Change: Thanks and good morning, everyone. You know, Alex, you just said we are living through, through uncertain times. So, how should we be thinking about the evolution of the macro backdrop, you know, as we move through Q4, but also into F26, and how are you positioned in your various geographies to continue to hopefully drive improving trends on a go forward basis?

Speaker Change: Alex you just said that we are living through uncertain times. So how should we be thinking about the evolution of the macro backdrop as we move through Q4, but also into <unk> and how are you.

And in your various geographies to continue to hopefully drive improving trends on a go forward basis.

Speaker Change: Thanks, Irene I appreciate the question good to hear your voice.

Speaker Change: Thanks, Irene. Appreciate the question. Good to hear your voice. Certainly Irene, great deal of uncertainty out there for us right now. For us, we continue to see the consumer under pressure, perhaps specifically in the United States, but really everywhere in our geographies. And what that means for us is just a relentless focus on our core initiatives.

Speaker Change: Certainly Irene great deal of uncertainty out there for us right now.

Speaker Change: For us we continue to see the consumer under pressure.

Speaker Change: Perhaps specifically in the United States, but really everywhere in our geographies.

Speaker Change: What that means for US is just a relentless focus on our core initiatives.

Speaker Change: Focusing on food, we've reduced our SKU count focusing on execution our meal bundles.

Speaker Change: focusing on food. We've reduced our skew count, focusing on execution, our meal bundles, focusing on our digital platforms. We've got some really exciting things coming up, this quarter, specifically in the nicotine space that we'll be launching. Really controlling cost, Irene. Cost and CapEx, we are going to be extraordinarily disciplined. I think we have a pretty strong track record of doing that. I think that's more important than ever. In this environment, so I don't pretend to sit here and know what the future is going to hold. There's a lot of uncertainty out there for us, so we are going to focus on the things we can control, continue to take market share, and be very disciplined with our cost and capital.

Speaker Change: Focusing on our digital platforms, we've got some really exciting things coming up.

Speaker Change: This quarter.

Speaker Change: Specifically in the nicotine space that we'll be launching.

Speaker Change: Really controlling cost Irene.

Speaker Change: Cost and Capex, we are going to be extraordinarily disciplined I think we have a pretty strong track record of doing that I think that's more important than ever in this environment. So.

Speaker Change: I don't pretend to sit here and no.

Speaker Change: The future's going to hold.

Speaker Change: There's a lot of uncertainty out there for us. So we are going to focus on the things. We can control continue to take market share and be very disciplined with our cost and capital.

Speaker Change: That's great. Thank you and just as a follow up.

Speaker Change: That's great. Thank you. And just as a follow-up, you know, how should we be thinking about how are you trending Q-4 to date with perhaps some of the weather distortions that we've seen in the US and how confident are you that you can deliver positive, you know, gallons and inside storm metrics in F-26?

Speaker Change: How should we be thinking about how are you trending Q4 to date with perhaps some of the weather distortions that we've seen in the U S and how confident are you that you can deliver positive.

Speaker Change: Gallons and insights short metrics in F 'twenty six.

Speaker Change: I think we've seen a similar kind of trend.

Speaker Change: I think we've seen a similar trend so far in this quarter that we've been seeing. So kind of more of the same is what I would say. Again, you know, without sounding like a broken record, Irene, it is focused on our activities. The things that we think will help us increase our market share, beat our competitors in the market and deliver that topside organic growth that we are looking to deliver. And I know you're looking for from us.

Speaker Change: So far in this quarter that we've been seeing.

Speaker Change: So kind of more of the same as what I would say.

Speaker Change: Again.

Speaker Change: Without sounding like a broken record Irene is focused on our activities. The things that we think will help us increase our market share beat our competitors in the market and deliver that top side organic growth that we are looking to deliver and I know youre looking for from us.

Speaker Change: And one thing we could add here, Irene, I think here is...

Speaker Change: And one thing.

Speaker Change: Yes Irina.

Speaker Change: Thank you guys.

Speaker Change: It's good to have this diversified geographic presence. And while it's true that we continue to see some challenging environment in the US, we are very pleased by what we see in Canada and Europe . Canada, with this welcome, please, coming from the alcohol category, and Europe is showing very strong resilience. And we continue to see that in this quarter, so that's good. And again, it helps us to have this balanced portfolio actually. And we continue to see that in this quarter, so that's good.

Speaker Change: It's good to have a diversified geographic presence and the <unk>.

Speaker Change: While it is true that we continue to see some challenging environment in U S. We are very pleased by what we've seen in Canada and Europe.

Speaker Change: Canada.

Speaker Change: This will.

Speaker Change: Welcome a piece coming from the alcohol category in Europe is showing a very strong resilience and and we continue to see that in each quarter. So that's so that's that.

Speaker Change: And again.

<unk> portfolio actually.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Michael that else with TD Cowen. Your line is now open.

Speaker Change: Your next question comes from Michael Van Elz with TD Cowan. Your line is now open.

Speaker Change: I am too.

Speaker Change: I'm going to focus more on the acquisition side right now. I know there's headlines that Seven Eyes signed a non-disclosure agreement this morning and I'm curious on a few things. One, our reports accurate that it is just for the assets that would be part of a divestiture to appease the FTC. And then in addition to that, do you feel you're making progress with Seven Eyes towards a deal?

Speaker Change: Focus more on the acquisition side right now I know there's headlines that.

Speaker Change: <unk> signed a nondisclosure agreement this morning and.

Speaker Change: Im curious on a few things one our reports accurate that it is just for the assets.

Would be part of that divestiture to appease the FTC and then <unk> and.

Speaker Change: In addition to that do you feel youre, making progress with <unk> towards a deal.

Speaker Change: We have not signed a non disclosure agreement was 7%.

Speaker Change: We have not signed a non-disclosure agreement with Seven and I. Our focus remains on a friendly approach on engaging with Seven and I, highlighting the benefits that we see to both groups of shareholders and all stakeholders, understanding and exposing Couche-Tard to the Japanese public, who we are, what we stand for, how we take care of communities and take care of people. That's where our focus is.

Speaker Change: Our focus remains.

Speaker Change: It remains on a friendly approach on engaging with 7% highlighting the benefits that we see to both groups of shareholders and all stakeholders.

Speaker Change: Understanding and exposing Couche tard to the Japanese public who we are what we stand for how we take care of communities and take care of people.

Speaker Change: That's where our focus is.

Speaker Change: So so the reports of an NDA this morning.

Speaker Change: So the reports of an NDA this morning that seemed to have been confirmed by Seven and I. They were talking about, I believe they were talking about just the stores that you would have to sell to a PCFTC, but you're saying that you haven't signed anything into your knowledge they haven't either?

Seem to have been confirmed by seven Tonight.

Speaker Change: They were talking about I believe they were talking about just the <unk>.

Speaker Change: <unk> cell therapies, the FTC, but youre, saying that you haven't signed anything in to your knowledge they haven't either.

Speaker Change: We are working with Eni.

Speaker Change: We're working with Chuck and I.

Speaker Change: We have not disclosed, but we have not signed an NDA with 7%.

Speaker Change: We have not disclosed, we have not signed an NDA with Seven and I. We are working with Seven and I together around a marketing package of what a divestment would look like in the United States. That marketing program has begun and there are NDAs being signed by potential buyers in that process.

Speaker Change: We are working with seven and I together around marketing package of what a divestment would look like in the United States.

Speaker Change: That marketing program has begun and there our NDA is being signed by potential buyers in that process.

Speaker Change: Okay. That's helpful. Thank you.

Speaker Change: and that's helpful, thank you. And then on the M&A environment as a whole, can you talk a little bit about what that environment looks like in your key geographies?

Speaker Change: And then.

Speaker Change: On the M&A environment as a whole can you talk a little bit about what the what that environment looks like in your key geographies and <unk>.

Speaker Change: and how active you are on files other than seven and I. And then of course, what does that imply about your confidence in getting a deal done with seven.

Speaker Change: And how active you are in on files other than seven and I and then of course, what does that imply about your confidence in getting a deal done.

Speaker Change: <unk> was 207 to nine.

Speaker Change: M&A remains active and our geographies we continue to look at a number of things. There is some some larger transactions in Europe that we continue to stay engaged on.

Speaker Change: M&A remains active in our geographies. We continue to look at a number of things. There are some larger transactions in Europe that we continue to stay engaged on. We continue to see pretty heavy deal flow in the United States of all sizes, small single sides, ten sides, hundred sides. We continue to engage in that M&A activity, as we always would. Our decentralized model enables us to look at a number of different opportunities. With our local business teams and our small centralized team here in La Valle, and there's no change for us in activity. But activity remains robust. And I think with the continued macro challenges that we're seeing, I think we believe we will continue to see that.

Speaker Change: We continue to see pretty heavy deal flow in the United States of all sizes small single sites 10 side 100 sites. We continue engage to engage in that M&A activity as we always would our decentralized model enables us to look at a number of different opportunities with our local business teams.

Speaker Change: Our small centralized team here in Lasalle.

Speaker Change: And there is no change for us in activity, but activity remains robust and I think with the continued macro challenges that we're seeing I think we believe we can we'll continue to see that.

Speaker Change: So doing those types of deals wouldn't preclude you from also pursuing 79.

Speaker Change: So doing those types of deals wouldn't preclude you from also pursuing a seven eye.

Speaker Change: Okay.

Speaker Change: Today.

Speaker Change: Today we cannot discard any file. We are completely engaged on this seven and a half conversation, as you know, but we don't know what will be the conclusion of this process. So for our duty here is to make sure that we explore any file that comes to our table and if it makes sense for us and within our financial framework, we will take the decision, you know, that is a right for the company, for the shareholders. So that's how it's our mindset.

Speaker Change: We we.

Speaker Change: We cannot discuss any any file.

Speaker Change: Currently engaged on the on the Onvia seven and eye conversation as you know.

Speaker Change: But.

Speaker Change: We don't know what will be.

Speaker Change: At the conclusion of this process so.

Speaker Change: I would tell you our duty is to make sure that we are.

Speaker Change: Explorer and you find that come to our table in the <unk>.

Speaker Change: If it makes sense for us.

Speaker Change: Within the financial framework.

Speaker Change: We'll take the decision that is right for the company for the shareholders. So that so that's I would tell myself.

Alright, Thank you very much.

Speaker Change: All right, thank you very much.

Speaker Change: Ladies and gentlemen, we request that you limit yourself to one question. Your next question comes from Mark Petrie with CIBC capital markets. Your line is now open.

Speaker Change: Ladies and gentlemen, we request that you limit yourself to one question.

Speaker Change: Your next question comes from Mark Petrie with CIBC Capital Markets. Your line is now open.

Speaker Change: Hey, good morning, and thanks for the clarification on on where you stand with seven and I I wanted to ask about the U S. Merch same store sales performance and specifically across categories, you called out the meal deal promotion and growth in food, but.

Speaker Change: Good morning, and thanks for the clarification on where you stand with Seven and I. I wanted to ask about the US Merch Stamster Sales Performance, and specifically across categories. You called out the Meal Deal promotion and growth in food, but hoping you can give some more color on the performance across your big categories. And also if you can quantify the impact of the regulatory changes in the Netherlands on that Europe 5% Stamster Sales Number, that would be helpful. Thank you.

Speaker Change: You can give some more color on the performance across your big categories.

Speaker Change: And also if you can quantify the impact of the regulatory changes in the Netherlands on that Europe.

Speaker Change: 5% same store sales number that would be helpful. Thank you.

Speaker Change: How about I start with the Netherlands, So the Netherlands enacted legislation that basically disallowed the sale of cigarettes at grocery stores.

Speaker Change: How about I start with the Netherlands? So the Netherlands enacted legislation that basically disallowed the sale of cigarettes at grocery stores. That, of course, moved a lot of that demand which was significant demand to other channels with our channel being a big beneficiary of that. Really pleased with our results in mid-Europe. I think this is the first time we had a month of same-store sales. We were positive by percent. The Netherlands is driving same-store sales in the mid-20 percent that's largely being driven by cigarettes and the US.

Speaker Change: That of course moved a lot of that demand, which was significant demand to other channels with our channel being a big beneficiary of that.

Speaker Change: Really.

Speaker Change: Really pleased with our results in mid Europe. I think this is the first time, we had a month of same store sales we were positive 5%.

Speaker Change: The Netherlands is driving same store sales in the mid 20, percents, that's largely being driven by cigarettes and the basket that comes with that cigarettes.

Speaker Change: In the U S.

Speaker Change: I referenced in my speaking notes that tobacco was a whole was negative for us, the cigarette declines, so overall we were down about 1% in the US, in overall tobacco, six down, two and a half, other tobacco or other nicotine, up a little more than 3% but net net down one. Food continues to grow up about 3% for the quarter. Pack Bev continues to grow and we do well in Pack Bev. I referenced in my speaking notes that we're really doing well in hot and cold dispensed, we're growing those categories, growing margin in those categories so they are certainly supporting us.

Speaker Change: I referenced in my speaking notes that tobacco as a whole was negative for us.

Speaker Change: The cigarette declines so overall, we were down about 1% in the U S and overall tobacco.

Speaker Change: Down to two and a half.

Speaker Change: Other tobacco or other nicotine up a little more than 3%, but net net down one food food continues to grow up about 3% for the quarter pack ban.

Speaker Change: Continues to grow and we do well in Pac Bev I referenced in my speaking notes that.

Speaker Change: We're really doing well in hot and Cold. This fact, we're growing those categories growing margin in those categories. So.

Speaker Change: They are certainly supported us.

Speaker Change: I appreciate that color. Thanks, all the best.

Speaker Change: I appreciate the color. Thank you. Goodbye.

Speaker Change: Thank you.

Speaker Change: Thank you. Your next question comes from Martin Landry with Spiefel. Your line is now open.

Speaker Change: Your next question comes from Martin Landry with Stifel. Your line is now open.

Speaker Change: Yeah.

Speaker Change: Hi, good morning. I was wondering if you could-

Martin Landry: Hi, good morning.

Speaker Change: I was wondering if you could.

Speaker Change: Refresh us on what's the.

Speaker Change: Refresh us on what's the proportion of food as a total of your merchandise sales in the US. And also, if you could discuss your strategy using commissaries to supply your stores, like how many commissaries do you have right now in the US, and how many do you expect to add in the community?

Speaker Change: Portion of food as a total of your merchandise sales in the U S.

Speaker Change: And also if you could discuss your strategy using Tim miniseries.

Speaker Change: Why your stores like how many can a series do you have right now in the U S and how many do you expect to add in the coming years.

Speaker Change: Yes. Thanks.

Speaker Change: Yeah, thanks. In North America, our food is about 12% of our mix in Europe . It's 20, 20 plus. And again, our goal, our best business unit in the United States is about 20%. And our goal is to get for us as a company up to that 20% and higher. We have one commissary in the United States today. Every under construction today, and we plan to add commissaries in the future to supply our own products.

Speaker Change: In North America, our fluids about 12% of our mix in Europe, It's 2020 plus.

Speaker Change: And again our goal our best business unit in the United States is about about 20% and our goal is to get for us as a company up to that 20% and higher.

Speaker Change: We have one commissary in the United States today.

Speaker Change: We are expanding both our warehouses our own warehouses, we have three under construction today.

Speaker Change: And we plan to add a commentaries in the future to supply our own products.

Speaker Change: Okay. Thank you.

Speaker Change: Okay. Thank you.

Mark Carden: Your next question comes from Mark Carden with UBS. Your line is now open.

Mark Carden: Your next question comes from Mark Carden with UBS. Your line is now...

Mark Carden: Okay. Thanks, so much for taking my question. So wanted to get your early read on tariff impacts and the potential for cyclical tariffs that could come into play in early April and just how youre thinking about potential impacts on your margin structure.

Mark Carden: Thanks so much for taking the question. So I want to get your early read on tariff impacts and the potential for reciprocal tariffs that could come into play in early April . And just hire think about potential impacts in your margin structure and potential plans to offset it. Thank you.

Mark Carden: And potential plans to offset it thank you.

Mark Carden: Yeah. Thank you for the question, it's certainly a moving feast.

Mark Carden: Thank you for the question. It's certainly a moving feast as we look to continue to analyze tariffs. I think we've done quite a bit of work, and the core story, I think we're pretty confident in, is that tariffs are not going to have a big impact on our business. We resource most of our products in our countries, in those local countries, in any tariff application, if it was kind of, it would be the same across all retailers for us to experience that. So we do not see a big impact from tariffs on our underlying business. I think the larger impact is what it means for inflation and what it means for consumers that are already stretched and really struggling with disposable income. And that's kind of the big unknown that we'll be watching very close.

Mark Carden: We look to continue.

Mark Carden: Continue to analyze tariffs I think we've done quite a bit of work and the core story.

Mark Carden: We're pretty confident in is that tariffs are not going to have a big impact to our business. We we source most of our products in our countries in those local countries on any tariff application.

Mark Carden: If it was kind of it.

Mark Carden: It would be the same across all retailers for us to experience that so.

Mark Carden: So we do not see a big impact from tariffs on our underlying business I think the larger impact is what it means for inflation and what it means for consumers that are already stretched and really struggling with disposable income.

Mark Carden: That's kind of the big unknown will be watching very closely.

Mark Carden: Excellent.

Mark Carden: Yeah, I just want to, you know, for us, it's uncertain times. And this is about bringing value, being really laser focused on how we can provide value to customers. We are really pleased with our meal deals and our bundles, and we will continue to lean into that to show value to our customers in this environment. Yeah. And yeah, one, one over example is again, the trend on the, on the private ground, private ground is actually to diverse, in US, in North America, on the large extent. So that's also one of the drivers for us to continue to speak about value to our customers.

Speaker Change: Yes, I just wanted to for US it's uncertain times and this is about bringing value being really laser focused on how we can provide value to customers. We are really pleased with our meal deals in our bundles and we will continue to lean into that to show value to our customers in this environment.

Mark Carden: And.

Mark Carden: Yes.

Mark Carden: All of our examples.

Mark Carden: The trend on the on the private brand program is accretive to the bus.

Mark Carden: In U S and North America on neurologic Central So that's until one of the driver for us to continue to to speak about value to our customers.

Speaker Change: Appreciate all the color. Thanks, so much.

Speaker Change: Appreciate all the color. Thanks so much.

Speaker Change: Your next question comes from Luke Hannan with Canaccord Genuity. Your line is now open.

Speaker Change: Your next question comes from Luke Hannan with Canacor Genuity. Your line is now open.

Luke Hannan: Yeah. Thanks, Good morning, I wanted to ask about some of the changes through the beverage alcohol retail environment within Ontario, you've mentioned the positive impact that you had that it had on your results I just wanted a little bit of clarification. What are you seeing right now for the customer that is coming into the store for those those beverage alcohol products are they coming in just to buy them or are they typically.

Luke Hannan: Yeah, thanks. Good morning. I wanted to ask about some of the changes to the beverage alcohol retail environment within Ontario. You mentioned the positive impact that you had that it had on your results. I just wanted a little bit of clarification. What are you seeing right now for the customer that is coming into the store for those those beverage alcohol products? Are they coming in just to buy them? Are they typically including them as part of a larger basket and then maybe at the fall on to that? What exactly are you doing as far as either offers, bundle offers, etc. in order to make sure the net impact you or to your merchandise margins isn't as dilute if that's just sell.

Speaker Change: Including them as part of a larger basket and then maybe as a follow on to that.

Speaker Change: What exactly are you doing as far as either offers bundle offers et cetera in order to make sure.

Speaker Change: What's the impact to you or to your merchandize margins isn't as dilutive as just selling.

Speaker Change: The alcohol products itself. Thanks.

Speaker Change: and alcoholic products.

Speaker Change: Yeah. Thanks for the question.

Speaker Change: Thanks for the question. I just, our central Canadian business unit, just the execution around the regulatory change in allowing bearing out all sales in Ontario. I just could not be more proud. We were ready. We executed straight out of the gate. We literally within the first week had all but a handful of stores offering product. And that enabled us to take huge share out of the gate. So just a tremendous effort by Steve and our team in Central Canada. We are learning. So we're learning around what next to have, how much alcohol to have, how much packed up to have. And so we will continue to optimize our sets in the space and it's really exciting candidly for us. What we're seeing and we're learning about the basket. We are seeing, I think initially we saw a lot of solo alcohol purchases. We are seeing that basket start to grow as we put adjacencies to the products. The usual things you would expect to see with alcohol, chips, snacks, take home chips, snacks, some energy drinks, some nicotine with those purchases. But obviously our goal is to continue to realize and grow that basket with these increased customers coming into our stores for beer and alcohol.

Speaker Change: I guess, our central Canadian business unit, just the execution around.

Speaker Change: The regulatory change and allowing beer and alcohol sales in Ontario, I, just could not be more proud we were ready we executed straight out of the gate, we literally within the first week at all but a handful of stores offering product and that enabled us to take huge share out of the gate.

Speaker Change: So just a tremendous effort by Steven our team in Central Canada.

Speaker Change: We are learning so we're learning around what mix to have how much alcohol to have how much Pac bev to have.

Speaker Change: And so we will continue to optimize our set.

Speaker Change: In the space and it's really exciting candidly for us what we're seeing and we're learning about the basket. We are seeing I think initially we saw a lot of solo alcohol purchases. We are seeing that basket start to grow as we put adjacencies to the products.

Speaker Change: The usual things you would expect to see with alcohol chips snacks take home chips snacks, some energy drinks.

Speaker Change: Some nicotine with those purchases, but obviously our goal is to continue to realize and grow that basket with these increased customers coming into our stores for beer and alcohol.

Speaker Change: Okay. Thank you very much.

Speaker Change: Okay, thank you very much.

Speaker Change: Your next question comes from Tami, Chen with BMO capital markets. Your line is now open.

Speaker Change: Your next question comes from Tammy Chen with BMO Capital Market. Your line is now open.

Tami Chen: Hi, Good morning. Thanks for the question mine is RMB U S fuel business.

Tami Chen: Hi, good morning. Thanks for the question. Mine is on the U.S. fuel business. The same source of volume, the comp. I think even adjusted for your estimate of the weather impact. It was worse than your merchandise comp. I think it was a sequential softening as well. So I'm just wondering if you can elaborate a bit more on that. Are you seeing any change in the competitive dynamics there? What sort of factors would you call out that led to that result? Thank you.

Speaker Change: I think firstly volume the car.

Speaker Change: I think even adjusted for your estimate of the weather impact, but it was worse than your merchandise comp then I think it was a sequential softening as well. So I'm just wondering if you can elaborate a bit more.

Speaker Change: I'm not seeing any change in the competitive dynamic there.

Speaker Change: What sort of factors that you'd call out that led to that result, thank you.

Speaker Change: Yes, thanks for the question.

Speaker Change: Yeah, thanks for the question.

Speaker Change: I mean, what's happening right now is our geographic mix mix in the U S is hurting us a bit.

Speaker Change: I mean, what's happening right now is our geographic mix in the US is hurting us a bit. Our largest states are Florida, Texas, and Arizona. I think throughout the quarter, we've seen really heavy inflation and cost of living increases in Florida and Arizona. As a result, we're seeing fewer snowbirds. I think we're seeing fewer Canadians head to the United States. I think we're seeing that in our Canadian volume. That's been a trend for a couple years to be frank. And then with the administration change, we are seeing softness along the southern border in specifically Texas and Arizona. So those are our three biggest states, our three largest volume states. They are suffering a bit due to those dynamics I just referenced. If you look in the middle of the country, we're actually performing quite well. So I think these are near-term challenges and where our mix is hurting us a little bit at the total level. We think this too shall pass. And for us, we are focused on execution of inner circle, bringing in additional customers, getting more fills from those customers. We are focused on the deployment of our AI pricing tool that we will continue throughout this quarter in the next fiscal year. And we are doubling down on our growth in B2B in North America as we continue to add resource into those teams and continue to grow that space of the business.

Speaker Change: Our largest states are Florida, Texas and Arizona.

Speaker Change: Bob.

Throughout the quarter, we've seen really heavy inflation in cost of living increases in Florida, and Arizona as a result, we're seeing fewer snowbirds I think we're seeing fewer Canadians and to the United States I think we're seeing that in our Canadian volume that's been a trend for a couple of years.

Speaker Change: To be Frank and then with the administration change.

Speaker Change: We're seeing softness along the southern border.

Speaker Change: Specifically, Texas and.

Speaker Change: And Arizona. So those are our three biggest states are three largest volume states they are suffering a bit due to those.

Speaker Change: Dynamics I guess referenced if you look in the middle of the country, we're actually performing quite well. So I think these are near term challenges.

Speaker Change: Where our mix is hurting us a little bit at the total level.

Speaker Change: We think this too shall pass and for US we are focused on execution of inner circle, bringing.

Speaker Change: Bringing in additional customers getting more fills from those customers. We are focused on the deployment of our AI pricing tool that we will continue throughout throughout this quarter and the next fiscal year and we are doubling down on our growth in <unk> in North America as we continue to add resources into those teams.

Speaker Change: Continue to grow that space of the business.

Speaker Change: Thank you.

Vishal <unk>: Your next question comes from Vishal <unk> with National Bank Financial Your line is now open.

Vishal <unk>: Your next question comes from Vishal Shreedhar with National Bank Financial. Your line is now open.

Vishal <unk>: Hi, Thanks for taking my question with respect to the Canadian margin the year over year in merchandising year over year weakness can you help us understand to what extent that was due to the nicotine and to what extent that was due to.

Vishal <unk>: Hi, thanks for taking my question. With respect to the Canadian margin, the year-over-year and merchandising, year-over-year weakness, can you help us understand to what extent that was due to the nicotine and to what extent that was due to...

Vishal <unk>: It makes change associated with alcohol.

Vishal <unk>: The mix change associated with alcohol.

Vishal <unk>: Yes.

Vishal <unk>: Thanks, Vishal, for the question. And I would say the vast majority of all of this division that here is explained by two components. The first one is the, you know, the alcohol category increasing in central, in Ontario. And the second one is, you know, the fact that, you know, we had to stop the selling of the zoning product in Canada. That was a high margin, you know, product. So, both two impacts basically explain the, the tradition that you have seen in the margin in Canada compared to last year.

Vishal <unk>: Thank you Sean for the question.

Vishal <unk>: I would say the vast majority of all the distribution that is explained by two components. The first one is the D.

Vishal <unk>: Paula.

Vishal <unk>: Category increasing in.

Vishal <unk>: In central in Ontario, and the second one either.

Vishal <unk>: The fact that you.

Vishal <unk>: You know we have to stop the sending off it does only product.

Vishal <unk>: In Canada.

Vishal <unk>: That was a high margin product so.

Vishal <unk>: It looks to be impacts from basically explain the dilution that you have seen in the <unk> in Canada.

Vishal <unk>: Last year.

Vishal <unk>: Could you help us understand the proportion of the impact from each.

Vishal <unk>: Could you help us understand the proportion of the impact for me?

Vishal <unk>: So.

Vishal <unk>: So basically, the one component related to the alcohol explain 60%, you know, roughly 60% of the division, and after you have 40% coming from, you know, the, the nicotine one.

Vishal <unk>: Basically the.

Vishal <unk>: The one component related to the alcohol or explain was 60%.

Vishal <unk>: 360% of the division and after yes.

Vishal <unk>: 40% are coming from.

Vishal <unk>: And.

Vishal <unk>: <unk> one.

Vishal <unk>: Thank you.

Vishal <unk>: Your next question comes from Anthony Bernardino with Wells Fargo. Your line is now open.

Vishal <unk>: Your next question comes from Anthony Bonadino with Wells Fargo. Your line is now open.

Anthony Bernardino: Yeah, Hey, good morning, guys. Thanks for taking my question. So I just wanted to ask about U S. Inside margins that 90 bps of expansion it looks like a pretty significant step change in the year over year trend from what you guys saw last quarter.

Anthony Bernardino: Yeah, hey, good morning, guys. Thanks for taking our question. So I just wanted to ask about US inside margins. That 90 bits of expansion looks like a pretty significant step change in the year over your trend from what you guys saw less quarter. I think you mentioned improved supply conditions, but can you just talk a little bit more about what drove that inflection and then how you're thinking about the durability of that?

Anthony Bernardino: You mentioned improved supply conditions, but can you just talk a little bit more about what drove that inflection and then how youre thinking about the durability of that into Q4.

Anthony Bernardino: Yes. Thank you. Thank you had kind of signaled that I thought there was opportunity for us to expand margins and I'm really pleased to see us kind of execute and deliver on that this quarter.

Anthony Bernardino: Yeah, thank you. I think I kind of signaled that I thought there was opportunity for us to expand margins, and I'm really pleased to see us kind of execute and deliver on that this quarter. We think there continues to be opportunity there. I think similar to our cost line, is it going to be vertical? You know, it's going to trend up and down to a degree, but we believe that the overall trend should continue to improve. That is due to as we continue to get better at our food program. I referenced the rationalization of SKUs. We are focused on driving down spoilage and increasing our margin rates across our food areas. I think I talked last time about our data and analytics capability and how we're analyzing promotions, reducing the number of promotions that we're running. I think we will continue to do that and we will continue to improve in that analytical capability, and we'll continue to use our global scale and apply our procurement teams with our vendors to try and improve our buying conditions. And I think when you consider all of these factors coming together, I think we remain pretty bullish on the forward look to improve our merge margins. Thanks, guys.

Anthony Bernardino: We think there continues to be opportunity there I think similar to our cost line is it going to be vertical it's going to trend up and down to a degree, but we believe that the overall trend should continue to improve that is due to as we continue to get better at our food program.

Anthony Bernardino: I referenced the rationalization of Skus, we are focused on driving down spoilage and increasing our margin rates across our food areas I think I talked last time about our data and analytics capability and how we're analyzing promotions, reducing the number of promotions.

Anthony Bernardino: We're running I think we will continue to do that and we will continue to improve and that analytical capability.

Anthony Bernardino: And we will continue to use our global scale.

Anthony Bernardino: <unk>.

Anthony Bernardino: Apply our procurement teams with our vendors.

Anthony Bernardino: To try and improve our buying conditions and I think when you consider all of these factors coming together I think we remain pretty bullish on the forward look to improve our merch margins.

Anthony Bernardino: Thanks, guys.

Anthony Bernardino: Yes.

Speaker Change: Your next question comes from Bobby Griffith with Raymond James. Your line is now open.

Speaker Change: Your next question comes from Bobby Griffin with Raymond James Your line is now open.

Speaker Change: Your line is open.

Speaker Change: Your line is open, Bobby.

Speaker Change: I'm, sorry, we can't hear you.

Speaker Change: I'm sorry, we can't hear you [inaudible]

Speaker Change: Ladies and gentlemen, as a reminder.

Speaker Change: Ladies and gentlemen, that's your reminder.

Speaker Change: Yes, Hey, Bobby.

Speaker Change: Yes. Ok. Good night.

Oh, yes, I can hear you, yes. Thank you sorry about that I just wanted to dive into the promotional environment here in the U S. As we head into <unk>.

Speaker Change: Oh, yes, I can hear you, yes, thank you, sorry about that. I just want to dive into the promotional environment here in the US as we head into, uh, you know, spring and summer. How do you look at that competitively and kind of what are your plans around promotion?

Speaker Change: Spring and summer how do you look at that competitively and kind of what are your plans around promotions.

Speaker Change: giving some of the consumer dynamics that were debating here in the U.S.

Speaker Change: Given some of the consumer dynamics that we're debating here in the U S.

Speaker Change: Yeah, Thanks, Bobby for Us it's about.

Speaker Change: You know, thanks, Bobby. For us, it's about showing value. Thank you.

Speaker Change: Showing value.

Speaker Change: It's.

Speaker Change: It's not more promotions, it's about collecting value and value that customers perceive and that they recognize and that's going to drive them to come into our stores. So that certainly is on our food products and on our meal bundles where I think I've shared previously that, you know, we are really hearing from customers. We're watching their behavior. They are seeing the value in what we're offering them for that meal occasion. We continue to grow those sequentially, materially kind of week over week and we will stay laser focused on that. We will again, the goal is not to run more promotions, it's to run effective promotions where consumers see real value and we will use our data and analytics to determine what those things are. I think, lastly, our reference nicotine and digital, you know, it's really about using our data to personalize, really understand customers, where what are they purchasing from us? What is their purchasing behavior? Giving them offers that matter to them. They get them to come into our stores more and appreciate what we are doing for them and we will increase the amount of personalization and offers we're making, both in the nicotine space but across our inner circle in all of our categories.

Speaker Change: It's not more promotions, it's about collecting value and value that customers perceive and that they recognize.

Speaker Change: And thats going to drive them to come into our stores. So that certainly is on our food products in our meal bundles, where I think I've shared previously that.

Speaker Change: We are really hearing from customers were watching their behavior. They are seeing the value in what we're offering them for that meal occasion, and we continue to grow those sequentially materially kind of week over week, and we will stay laser focused on that.

Speaker Change: We will again the goal is not to run more promotions, it's to run effective promotions, where consumers see real value and we will use our data and analytics to determine what those things are I think lastly, I referenced.

Speaker Change: Nicotine in digital.

Speaker Change: It's really about using our data to personalize really understand customers.

Speaker Change: What are they purchasing from us what is their purchasing behavior, giving them offers that matter to them.

Speaker Change: Get them to come into our stores more and appreciate what we are doing for them and we want to increase the amount of personalization and offers we're making both in the nicotine stake space, but across our inner circle in all of our categories.

Speaker Change: Thank you for the detail and best of luck here.

Speaker Change: Thank you for the detail and best of luck here. Thank you.

Speaker Change: Thank you.

Speaker Change: Ladies and gentlemen, as a reminder, should you have a question. Please press star one.

Speaker Change: Ladies and gentlemen, as a reminder, should you have a question, please press star one.

Speaker Change: Your next question comes from John Royall with JP Morgan. Your line is now open.

Speaker Change: Next question comes from John Royall with Jpmorgan. Your line is now open.

John Royall: Hi, good morning, Thanks for taking my question.

John Royall: Hi, good morning. Thanks for taking my question. So could you talk a little bit about private label and how that's been trending and the rollout of new products there? What's working and what isn't working and what are you seeing in terms of the customer behavior? They still have the propensity to trade down into that lower price point with private label or is that type of behavior starting to reverse at all?

Speaker Change: So could you talk a little bit about private label and how that's been trending in the rollout of new products there.

Speaker Change: What's working and what isn't working and what are you seeing in terms of the customer behavior are they still do they still have the propensity to trade down into that lower price point with private label or is that type of behavior is starting to reverse at all.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yes, at the company level, as I mentioned, we continue to see customers looking for this category. We can talk about everything we have done in recent months on the cigarette side. We have a very good story there, we have had good growth there, but it is true and remains true across categories. The reality for us is that penetration is still low and we still have many opportunities there, so we recently brought in a new leader to take care of this category and ensure that we continue to expand, not just in terms of HKU, but by ensuring that we are present in relevant categories. Because, as Alex mentioned, the customer is looking and will continue to look for value. So, yes, we see opportunities across geography and across categories for the coming months. And we make sure that, in terms of price, we continue to expand the HKUs, we have visibility to add at least more than 100 HKUs in the coming months. So, yes, I feel quite good about the program there and I make sure that we continue to increase penetration. Thank you.

Speaker Change: Well as I mentioned, yeah, we will continue to see.

Speaker Change: Because some of them are looking for this category.

Speaker Change: We can talk about <unk>.

Speaker Change: In the past few months on the <unk> side.

Speaker Change: We have a really great story, there so in nice growth there.

Speaker Change: But it is true and it remains true across categories.

Speaker Change: For us is that in open interest.

Speaker Change: And attrition is still low and we are still a lot of opportunities. There. So we recently appointed a new leader on visa.

Speaker Change: To take care of it so obvious category and to make sure that we continue.

Speaker Change: <unk> continued to expand it not only in terms of its ku, but making sure that we are presenting the relevant categories. So.

Speaker Change: Because you know what.

Alex: As Alex mentioned.

Speaker Change: The customer is looking and we'll continue to look for value. So.

Speaker Change: Yes, we see we've seen opportunity across across the across the coke.

Speaker Change: Do geographic and across the categories for the next coming more fund will make sure that <unk> in terms of.

Speaker Change: Cried round, yeah, we continue to expand the Skus, we have a visibility of at least adding mobile one until the skus in the next coming more so.

Speaker Change: Feeling pretty pretty well about the program there.

Speaker Change: And making sure that you will continue to interest rate picture.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Cory <unk> with Jefferies. Your line is now open.

Speaker Change: Your next question comes from Corey Tarlowe with Jeffries. Your line is now open.

Cory: Great. Thanks, it's really nice to see the momentum in the U S.

Cory: Great, thanks. It's really nice to see the momentum in the US.

Speaker Change: Merchandize business, specifically around the meal deals and I know you've expanded into Canada.

Speaker Change: Merchandise Business, specifically around the meal deals, and I know you've expanded it into Canada. I just wanted to ask how you think about further building upon this and where you think the opportunity could be, just specifically as it relates to really driving value with food and fresh food specifically in the US and Canada and globally, because that really does seem like a great opportunity for the business to be with that. So let's get started.

Cory: I just wanted to ask how you think about.

Cory: Further building upon this and where you think the opportunity could be.

Cory: Just specifically as it relates to really driving value.

Cory: With food and fresh foods specifically.

Cory: In the U S and Canada and globally.

Cory: It really does seem like a great opportunity for the business as we look ahead.

Thank you we agree with you we think it's a tremendous opportunity and we under SKU as we've shared with you around our percentages.

Cory: Thank you. We agree with you. We think it's a tremendous opportunity and we underscue as we've shared with you around our percentages. Our focus today is in North America. We have validated that we have a specific number of skews that our customers want to purchase from us. Our focus right now is executing on that program and those skews and really targeting our existing customers. We have hundreds and many stores we have more than a thousand customers visiting us every day. All of those customers eat and our focus is on execution of these core products that we have proven our customers want and demand. I think we will execute that. We will see execution of that and then we will localize. You know different taste profiles and different geographies. That's true here in Canada. It's also true in the United States. I think we've got to earn the right of execution of the course and then we will localize products to continue to grow our share. That's our plan. We're going to start with our existing customers. Once we feel like we're good at that, we will expand and start to look to attract new customers.

Cory: Our focus today is in north Americas.

Cory: We have validated that we have a specific number of skus that our customers want to purchase from US our focus right now is executing on that program and those skus and really targeting our existing customers. We have we have hundreds and in many stores, we have more than 1000 customers visiting us every day.

Cory: All of those customers E and our focus is on execution of these core products that we have proven our customers want and demand.

Cory: Think.

Cory: We will execute that.

Cory: We will see execution of that and then we will localize.

Different taste profiles in different geographies, that's true here in Canada. It's also true in the United States I think we've got to earn the right of execution of the core then we will localize products to continue to grow our share.

Cory: Our plan, we're going to start with our existing customers. Once we feel like we're good at that we will expand and start to look to attract new customers.

Speaker Change: Great. Thank you very much and then just curious on as you think about your your sourcing abilities in Europe or.

Speaker Change: Great. Thank you very much. And then just curious, as you think about your sourcing abilities and your opportunity to continue to lower costs, what inning would you say that you're in as you think about the opportunity to continue to lower costs for the business around sourcing capabilities, because that continues to be an opportunity. And obviously we saw some upside versus consensus on some of the fuel margin numbers. I'm curious how you think about the continued opportunity in that regard as well as we continue to look at it.

Cory: The opportunity to continue to lower costs.

Cory: What inning would you say you're in as you think about the.

Cory: The opportunity to continue to lower costs for for the business around.

Cory: Sourcing capability that continues to be an opportunity and obviously we saw some upside.

Cory: Consensus on on some of the fuel margin numbers I'm curious how you think about the continued opportunity in that regard as well as we continue to look ahead.

Cory: Yes, I think in our global field team is certainly more than a decade on their journey I think we feel really strong about that that team their capabilities. We continue to expand our capability of our Geneva team and our team with musket down in Houston I think yes, we will continue to make investment.

Cory: I think our global fuel team has been on their journey for more than a decade. I think we feel really strong about their team, their capabilities. We continue to expand the capacity of our team from Geneva and Muscat to Houston. I think we will continue to make investments in these relationships. We will continue to advance our ability to use our own fleet of cars. About half of our gallons in the United States are supplied by our own fleet of cars. This fleet allows us to achieve arbitrages when they exist. I think we feel very strong about our fuel journey. I think we have outperformed Opus by about 3 cents, again, this quarter, and there is still a lack of volatility. We will continue to invest in that. On the emergence side, we have a centralized global procurement team, again, for more than a decade. I think we are making investments in this team. I think there is enough capacity. We are really focusing on implementing our activities and products, not for buyback, at the moment. Philippe owns that and has a team of people. We see a lot of opportunities there. It's part of our 'fit to serve' and some part of the expenses we refer to. I think even more on the emergence side, I would say we are in year 7. If you talk about football, I guess you are. I would say on the emergence side, we are in year 5 or 6 and we will continue to move forward, especially GNFR. I think on the emergence side, we will go further into the supply chain here in North America. And I would say we are in year 1 or 2. We own three of our owners today. We have one in Texas, one in Arizona, and one here in Montreal. I refer that we have three more under construction currently. We have a plan to really serve ourselves, let's call it about 75% of our own locations, through our owners. We like what this does for us, both from a COGS perspective and a supply perspective. And according to the previous question, we will add additional commissaries outside some of these owners to improve the cost of products and supply by continuing to build food.

Cory: In those relationships.

Cory: We will continue to advance our ability to buy the arbitrage using our own trucking fleet about half of our gallons in the U S are provided by our own trucking fleet that fleet enables us to capture arbitrage when it exist. So I think the fuel journey, we feel great about I think we outperformed opus by about <unk>.

Cory: Again, this quarter and they are still lacks volatility we will continue to invest in that on the merch side, Yes, we've had a central globalized procurement team again for more than a decade.

Cory: I think we're making investments into that team I think there's quite a bit of capability.

Cory: We're really focusing kind of stepping up our activity in goods not for resale right now basically.

Cory: One is that has a team of people.

Cory: We see a lot of opportunity there that's part of our fit to serve in and some of the cost savings, we reference I think than more on the merch Cogs side.

Cory: So in fuel I would say we're in inning seven.

Speaker Change: If you are talking baseball, which I assume you are.

Speaker Change: I'd say on the procurement side, we're in inning, five or six and we will continue to advance, especially GFR I think on the merchant.

Speaker Change: Supply chain, we are going to go deeper into the supply chain here in North America, and I would say we're in inning, one or two.

Speaker Change: We own.

Speaker Change: We own three of our own warehouses today, we have one in Texas, one in Arizona and one here in Montreal.

Speaker Change: I referenced where we have three more under construction right now we have a plan to really be able to service call. It roughly 75% of our own sites through our own warehouses, we like what this does for US both from a Cogs perspective, as well as an assortment perspective and per the question earlier, we will be at.

Speaker Change: Adding additional commentaries besides some of these warehouses to improve our cost of goods in our assortment as we continue to grow food.

Speaker Change: Thank you very much very helpful Best of luck.

Speaker Change: Thank you very much, very much. [inaudible]

Speaker Change: There are no further questions at this time I will now turn the call over to Matt <unk> for closing remarks.

Speaker Change: I know for the questions that this time I will now turn the call over to Mathieu for closing remarks.

Speaker Change: Thank you Alex and Philippe that's covers all the questions for today's call. Thank you all for joining us and wish you a great day and look forward to discussing our fourth quarter 2025 results from June <unk> and I hope that answer.

Speaker Change: Thank you, Alex and Filipe. That covers all the questions for today's call. Thank you all for joining us. We wish you a great day and look forward to discussing our fourth quarter 2025 results in June .

Speaker Change: I missed one of them, obviously, but I mean, no sweat through negative average only <unk>. Good news is it does it kept him you missed the minimum I think most of my questions that may not even be the MSP.

Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.

Speaker Change: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your line.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Okay.