Strong performance in Canada was not enough to offset a quarterly profit slump at Alimentation Couche-Tard’s in Q1.

The Laval-based company reported that profits for the first quarter fell 4.5% to $834.1 million USD, while revenues were $15.6 billion USD, down 16.3% from a year ago, due in part to lower fuel prices.

However, total merchandise and service revenues were $4.3 billion USD, up 5% from a year earlier, largely attributed to its changing product selection.

Same store sales revenue in Canada moved 6.4% higher, driven by its “diversified offer in the beverage category” as well as the “continued growth” of its fresh food, fast foodservice program and private label brands.

In this morning’s earnings call, Brian Hannasch, president and CEO of Alimentation Couche-Tard, said Canadian operations “led the way,” with particular strength in packaged beverages.

Hannasch said the consumer is stronger north of the border, a “bright spot in the business,” and that he is pleased with “strong” performance in its Canadian markets, especially its convenience offerings. Packaged good sales are robust, he said, with new lines in ready to drink coffees, sports drinks and energy drinks performing well. He also pointed to limited time offers like Mountain Dew Purple Thunder as a product that has performed well in Canada.

Same-store road transportation fuel volumes increased by 7.2% in Canada, favorably impacted by lower crude oil prices and promotional activities.

“With inflationary conditions continuing across the globe, our focus has remained on providing value and ease to our customers both inside our stores and on our forecourts,” Hannasch said.

On Aug. 31, thousands of Circle K and Couche-Tard locations celebrated customer loyalty on its first ever Global Circle K Day, which included half off discounts on hot food, car washes and dispensed beverages. It also offered 10 cents per litre off of gas.

Lastly, Fire & Flower, which expanded its retail cannabis deal with Couche-Tard in the spring, filed for bankruptcy protection in June. Couche-Tard advanced a $9.8 million CAD debtor-in-possession loan, and the company said one of its wholly-owned subsidiaries is acting as stalking horse bidder on the cannabis retailer’s assets.