Parkland Highlights Investments in Organic Growth Initiatives

Ongoing investment in initiatives to support organic growth has already delivered significant improvements, including backlog conversion, standardization of offer and pricing, and labor and fleet optimization. These foundational changes position Parkland to capture increasing volumes and margins as market conditions improve, and its diversified business model has proved its resilience as the company maintained focus on its organic growth initiatives, according to Parkland leadership.

Espey, however, warned against negative outcomes from the implementation of U.S. and Canadian tariffs. 

"More broadly, political instability will have negative implications for both Canadian and U.S. businesses, as well as consumers on both sides of the border. This could lead to volatile results over the next few months as details get sorted," he said. "We have established an internal task force that is closely monitoring the situation to understand and act on any impacts to Parkland's operations."

Given Parkland's focus on locally sourced and sold fuels and convenience items, Espey added that the overall impact on the company is expected to be largely neutral across the business. 

Parkland's adjusted EBITDA for the fourth quarter of 2024 was $428 million, down from $463 million during Q4 2023. Adjusted EBITDA for the full year was $1.69 billion, down from $1.9 billion in 2023.

The company saw a net loss of $29 million during Q4 2024, down from net earnings of $86 million during the same period a year ago. Net earnings for the year were $127 million, down from $471 million in 2023. Parkland also saw adjusted earnings of $405 million in 2024, down from $626 million the prior year.

Same-store sales growth was negative during Q4, primarily due to reduced traffic at the company's M&M Food Market locations, according to Interim Chief Financial Officer Brad Monaco. The decline also was tied to a more budget-friendly consumer and the impact of the Canada Post strike for a large portion of Parkland's key sales season. Excluding M&M and the impact of declining cigarette sales, same-store convenience sales were up approximately 3% during the quarter.

"We continue to solidify our position as a top fuel and convenience retailer in Canada, advancing many of our core retail initiatives in 2024," Monaco said. "We have helped fuel market share through challenging macroeconomic conditions, growing convenience market share in core categories such as snacks and packaged beverages and rapidly expanded our alcohol sales in Ontario after regulatory changes allowed the sale of beer and wine in convenience stores."

Alcohol is now available at more than 135 of the company's locations in Ontario and will expand to another 30 locations in 2025.

Q4 2024 Highlights

For the fourth quarter of the year, Parkland's results by segment were:

United States: Adjusted EBITDA was $32 million, down from $39 million during the fourth quarter of 2023. Parkland attributed this to the timing of certain expenses and a challenging volume environment, partially offset by stronger fuel unit margins.

Canada: Adjusted EBITDA was $190 million, consistent with Q4 2023. Stronger fuel unit margins and lower operating costs were offset by lower commercial volumes due to unseasonably warm weather and the divestment of Parkland's commercial propane business.

International: Adjusted EBITDA was $171 million, down from $157 million during Q4 2023. Strong performances in the retail business, especially in Guyana and Suriname, as well as Parkland's marine business were partially offset by the impact of lower wholesale volumes.

Refining: Adjusted EBITDA was $60 million, down from $106 million in Q4 2023. Lower refining margins were the primary driver of the decrease.