March 20, 2018 / 1:23 PM / 9 months ago

UPDATE 1-Canada's Couche-Tard revenue jumps on higher U.S. sales

(Adds details on quarterly earnings)

March 20 (Reuters) - Convenience stores operator Alimentation Couche-Tard on Tuesday reported a 38.3 percent rise in third-quarter revenue, benefiting from recent acquisitions and higher sales from the United States, its biggest market.

The owner of the Circle K chain of stores said net income rose to $463.9 million, or 82 cents per share, in the quarter ended Feb. 4, from $287 million, or 50 cents per share, a year earlier.

Road transport and fuel revenue from United States rose 51.3 percent to $7.29 billion, while merchandise and service revenue rose 28.3 percent to $2.8 billion.

The company, which has been expanding through acquisitions, said it completed the $1.6 billion purchase of Holiday Station stores during the quarter.

This is expected to add $50 million to $60 million in savings for Couche-Tard over the next three years, the company said.

Gas retail and convenience stores like Couche-Tard have been facing competition from fast food chains and supermarkets across the United States and Canada that sell similar products at cheaper rates, triggering consolidation among store operators.

Couche-Tard closed its biggest ever deal - the $4.4 billion purchase of U.S. company CST Brands - in June 2017. From the deal, the company said, it expects cost benefit of $215 million over the next three years.

The company booked a tax gain of 196.3 million in the quarter due to the changes in the U.S. tax law. On an adjusted basis, the company earned 54 cents per share.

Total revenue jumped to $15.79 billion from $11.42 billion.

Reporting by Taenaz Shakir in Bengaluru; Editing by Arun Koyyur

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