Parkland Focuses on Loyalty Following Challenging Third Quarter

Adjusted EBITDA for the quarter was $431 million, down 26% year over year. However, adjusted EBITDA from Parkland's retail and commercial operations grew 2% over the last 12 months, which demonstrates progress on the organic growth initiatives required to deliver on the company's 2028 ambitions, Espey continued. 

Net earnings were $91 million, down 60% from the same quarter one year ago, and adjusted earnings were $106 million, down 54%.

The past year also saw Parkland grow its market share in Canada to become the country's second largest fuel and convenience retailer. The Canadian segment saw positive impacts from the company's JOURNIE Rewards program and On the Run store conversions.

"Private label business was up 12% compared to prior year, and we continue to leverage JOURNIE to attract customers into our sites with targeted fuel incentives, in-store convenience offers, and cross-promotions between the forecourt and convenience stores," said Chief Financial Officer Marcel Teunissen.

Over the last five years, JOURNIE has driven traffic across Parkland's network and expanded through strategic partnerships. Additionally, in October, the company officially launched the integration of the M&M Food Market loyalty program, with initial results proving to be "highly encouraging."

Parkland is also focused on long-term strengthening of its supply advantage, according to Espey.

"We recently consolidated our supply and trading teams across the regions, uncovered structural product cost savings, which will lower our costs to serve," he said. "I am confident we can compete going forward and we will be positioned to win in the long-term. In a slow economic environment, I define success by outperforming industry, and I see that in every part of the organization."

In the United States, Parkland saw company same-store volumes down 4.4% during the quarter, which was better than the industry in the markets where the company operates, according to Teunissen, who added that this was due to the team's ability to recover market share in Florida. He noted that Parkland expects to complete its Florida divestment before the end of 2025.

Q3 2024 Highlights

United States: Adjusted EBITDA was $54 million, in line with $52 million during the third quarter of 2023, with performance underpinned by improved supply optimization despite lower consumer demand.

Canada: Adjusted EBITDA was $200 million, in line with $206 million during Q3 2023, based on strong fuel unit margins from continued price and supply optimization despite lower consumer demand. Volume and sales decreases were primarily attributed to reduced discretionary spending due to economic conditions.

International: Adjusted EBITDA was $152 million, down 11% from $170 million in Q3 2023. This was primarily driven by lower wholesale volumes and partially offset by continued growth in Parkland's retail, commercial and aviation base businesses.

Refining: Adjusted EBITDA was $49 million, down from $188 million during the same quarter one year ago, based primarily on lower refining margins.

Calgary-based Parkland Corp. is an independent supplier and marketer of fuel and petroleum products and a convenience store operator. Parkland currently services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.