To provide more information for evaluating the Corporation's performance, the financial information included in our financial documents contains certain data that are not performance measures under IFRS$(R)$ Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"), which are also calculated on an adjusted basis to exclude specific items. Those performance measures are called "Non-IFRS Accounting Standards measures". We believe that providing those Non-IFRS Accounting Standards measures is useful to management, investors, and analysts, as they provide additional information to measure the performance and financial position of the Corporation.
The following Non-IFRS Accounting Standards financial measures are used in our financial disclosures:
-- Gross profit;
-- Earnings before interest, taxes, depreciation, amortization and
impairment ("EBITDA") and adjusted EBITDA;
-- Adjusted net earnings attributable to shareholders of the Corporation;
-- Interest-bearing debt.
The following Non-IFRS Accounting Standards ratios are used in our financial disclosures:
-- Merchandise and service gross margin and Road transportation fuel gross
margin;
-- Normalized growth of operating, selling, general and administrative
expenses;
-- Growth of (decrease in) same-store merchandise revenues for Europe and
other regions;
-- Adjusted diluted net earnings per share;
-- Leverage ratio;
-- Return on equity and return on capital employed.
The following capital management measure is used in our financial disclosures:
-- Net interest-bearing debt/total capitalization.
Supplementary financial measures are also used in our financial disclosures and those measures are described where they are presented.
Non-IFRS Accounting Standards financial measures and ratios, as well as the capital management measure, are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS Accounting Standards. These Non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS Accounting Standards. In addition, our definitions of Non-IFRS Accounting Standards measures may differ from those of other public corporations. Any such modification or reformulation may be significant. These measures are also adjusted for the pro forma impact of our acquisitions and impacts of new accounting standards if they are considered to be material.
Gross profit. Gross profit consists of Revenues less the Cost of sales, excluding depreciation, amortization and impairment. This measure is considered useful for evaluating the underlying performance of our operations.
The table below reconciles Revenues and Cost of sales, excluding depreciation, amortization and impairment, as per IFRS Accounting Standards, to Gross profit:
12-week periods ended 24--week periods ended
(in millions of October 13, October 15, October 13, October 15,
US dollars) 2024 2023 2024 2023
---------------- ------------- ------------- -------------- --------------
Revenues 17,405.3 16,425.6 35,682.8 32,048.8
---------------- ------------- ------------- -------------- --------------
Cost of sales,
excluding
depreciation,
amortization
and impairment 14,254.3 13,489.1 29,358.7 26,173.9
---------------- ------------- ------------- -------------- --------------
Gross profit 3,151.0 2,936.5 6,324.1 5,874.9
---------------- ------------- ------------- -------------- --------------
Please note that the same reconciliation applies in the determination of gross profit by category and by geography presented in the section "Summary Analysis of Consolidated Results".
Merchandise and service gross margin. Merchandise and service gross margin consists of Merchandise and service gross profit divided by Merchandise and service revenues, both measures are presented in the section "Summary Analysis of Consolidated Results". Merchandise and service gross margin is considered useful for evaluating how efficiently we generate gross profit by dollar of revenue.
Road transportation fuel gross margin. Road transportation fuel gross margin consists of Road transportation fuel gross profit divided by Total volume of road transportation fuel sold. For the United States and Europe and other regions, both measures are presented in the section "Summary Analysis of Consolidated Results". For Canada, this measure is presented in functional currency and the table below reconciles, for road transportation fuel, Revenues and Cost of sales, excluding depreciation, amortization and impairment, as per IFRS Accounting Standards, to Gross profit and the resulting road transportation fuel gross margin. This measure is considered useful for evaluating how efficiently we generate gross profit by gallon or liter of road transportation fuel sold.
12-week periods ended 24--week periods ended
---------------------------- ------------------------------
(in millions of
Canadian
dollars, unless
otherwise October 13, October 15, October 13, October 15,
noted) 2024 2023 2024 2023
---------------- ------------- ------------- -------------- --------------
Road
transportation
fuel revenues 1,858.7 2,032.6 3,826.8 3,968.3
---------------- ------------- ------------- -------------- --------------
Road
transportation
fuel cost of
sales,
excluding
depreciation,
amortization
and
impairment 1,678.8 1,847.2 3,470.9 3,599.8
---------------- ------------- ------------- -------------- --------------
Road
transportation
fuel gross
profit 179.9 185.4 355.9 368.5
---------------- ------------- ------------- -------------- --------------
Total road
transportation
fuel volume
sold (in
millions of
liters) 1,347.4 1,360.3 2,690.0 2,742.5
---------------- ------------- ------------- -------------- --------------
Road
transportation
fuel gross
margin (CA
cents per
liter) 13.35 13.63 13.23 13.44
---------------- ------------- ------------- -------------- --------------
Normalized growth of operating, selling, general and administrative expenses ("normalized growth of expenses"). Normalized growth of expenses consists of the growth of Operating, selling, general and administrative expenses adjusted for the impact of the changes in our network, the impact from changes in accounting policies and adoption of accounting standards, the impact of more volatile items over which we have limited control including, but not limited to, the net impact of foreign exchange translation, electronic payment fees excluding acquisitions, and acquisition costs, as well as other specific items for which the impact on consolidated results is not deemed indicative of future trends. This measure is considered useful for evaluating our ability to control our expenses on a comparable basis.
The tables below reconcile growth of Operating, selling, general and administrative expenses to normalized growth of expenses:
12-week periods ended
-----------------------------------------------------------
(in millions of
US dollars, October October October
unless otherwise 13, 15, 15, October
noted) 2024 2023 Variation 2023 9, 2022 Variation
----------------- ------- -------- --------- -------- -------- ---------
Operating,
selling, general
and
administrative
expenses, as
published 1,649.9 1,468.3 12.4 % 1,468.3 1,433.0 2.5 %
----------------- ------- -------- --------- -------- -------- ---------
Adjusted for:
Increase from
incremental
expenses
related to
acquisitions (147.1) -- (10.0 %) (22.3) -- (1.6 %)
Increase from
the net impact
of foreign
exchange
translation (2.4) -- (0.2 %) (4.0) -- (0.3 %)
Decrease from
changes in
acquisition
costs
recognized
to earnings 1.3 -- 0.1 % 1.1 -- 0.1 %
Decrease from
changes in
electronic
payment fees,
excluding
acquisitions 0.7 -- -- 11.3 -- 0.8 %
Normalized growth
of expenses 1,502.4 1,468.3 2.3 % 1,454.4 1,433.0 1.5 %
----------------- ------- -------- --------- -------- -------- ---------
24--week periods ended
(in millions of
US dollars, October October October
unless otherwise 13, 15, 15, October
noted) 2024 2023 Variation 2023 9, 2022 Variation
----------------- ------- -------- --------- -------- -------- ---------
Operating,
selling, general
and
administrative
expenses, as
published 3,282.4 2,907.4 12.9 % 2,907.4 2,831.1 2.7 %
----------------- ------- -------- --------- -------- -------- ---------
Adjusted for:
Increase from
incremental
expenses
related to
acquisitions (290.8) -- (10.0 %) (46.2) -- (1.6 %)
Decrease
(increase) from
changes in
acquisition
costs
recognized to
earnings 3.7 -- 0.1 % (1.2) -- --
Decrease from
the net impact
of foreign
exchange
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